Tax Rebates May Not Be Enough For Families

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Many have begun receiving their tax rebates already and anyone who hasn't yet is probably looking forward to it. Still, $600 per adult and $300 per child can only go so far. The idea behind the rebate is to stimulate the economy but if a family needs more, they may want to consider the advantages of a 1031 Tax Exchange.

Real estate, perhaps more than any other area in today's economy, fluctuates rapidly and to extensive levels. It's a pretty good sign that if the United States government has found the need to issue millions of dollars in the form of an economic stimulus package, the present day economic status is not at its best. Of course, reading a paper will easily reveal these facts. One may be interested to know then that there are now many other ways to earn extra money that don't end in the disappointment of an internet scam and thousands of dollars down the tube with no way to find resolution on the matter. These ways vary greatly but few have the stability that an established government program has to offer. The 1031 exchange, for example, can offer significant tax advantages to real estate investors, and there has never been a better time than now to invest in real estate..

While while the tax rebate may offer families a mild benefit, the greatest wealth building tool available to the individual investor is the 1031 exchange, which allows real estate investors to defer or possibly eliminate their real estate tax burden on real estate investments. With the recently issued rebates giving each family a helping hand, the 1031 Exchange Alliance is more than ever ready to help the serious investor give their family a better financial future.

1031 exchanges benefit the initial buyer over time, the basic principle of of which involves the deferment of taxes. A Section 1031 exchange is one of a few techniques available that can postpone, or in some cases eliminate, taxes on the sale of qualifying properties. Since tax is deferred, the buyer has more available money to invest in other properties. Because of this, they can apply for an interest free loan straight from the federal government, in the amount they would have paid in taxes. All gain from depreciation recapture is postponed and that person can then acquire and dispose of properties to reallocate their investment portfolio without paying on any gain, hence 1031 tax free exchange.

This may sound confusing at first but then again, most government related programs are. Worry not, there is help out there, 1031 exchange specialists who provide information, guidance and more for those who may be interested in such an endeavor. The 1031 Exchange Alliance is a readily available resource for persons interested in having the 1031 exchange explained. Since tax rebates are now in the bank or on the way, each family should seriously consider now to be the best time to make such an investment.

For more information on 1031 exchanges, please visit


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