Whenever you sell business or investment property and you have a gain, you generally have to pay tax on the gain. How much tax you pay will vary depending on what state you live in and your circumstances, but generally it ranges from 15% to 30%.

Internal Revenue Code Section 1031 offers you the opportunity to defer, or possibly eliminate, this capital gains tax if you exchange the property you are selling for other property. You defer the payment of normally due tax until sometime in the future, and under certain circumstances, you may never pay the tax.

A 1031 Exchange is often called "tax free exchange" because tax is not paid on the transaction. Tax free exchanges have been around since the 1920's but guidelines have changed throughout history. Details can seem complicated, but with an experienced professional guiding your transactions, you can be assured that your tax-free exchanges are easy, worry-free and most important, safe.

Here are some goals you can accomplish through a 1031 exchange:

• Increase Cash Flow:
Exchange 40 acres of non-productive bare land for cash-flow rich mini-storage units.
• Ease Your Tax Burden:
Exchange your apartment complex for a commercial building with a triple-net lease or perhaps a tenant-in-common type property.
• Change location:
For example, you might exchange rental houses in California for rental houses in New York. This is usually done when the owner moves and wants his/her investment close by, or wants to move their investments to a better, more dynamic market.
• Improve the Quality of Your Investment:
You could exchange your 40-year old strip mall for a recently built commercial property.
• Turn Your Investment into a Newly Constructed Property:
For instance, if you exchanged rental houses for a new apartment complex you have built via a construction exchange.
• Diversify:
You could exchange a single-tenant commercial building for multiple-tenant duplexes.
• Relocate Your Vacation Home:
Depending on circumstances, you could exchange a vacation home in Jackson Hole, Wyoming for a new vacation home in Whitefish, Montana.

If structured properly, all of the goals in the above examples can be accomplished without having to pay any tax to the federal or state governments.

1031 Exchange Professionals in The Flathead Valley

Exchange Services, Inc -
Catherine Workman
406-862-6995

Summit Accommodators, LLC -
Scott Adams
406-755-1596