ilmscore | Prediction Details
"However, if you take this new $200,000, take the $100,000 that you got from the money that you put in, and you take the $100,000 profit, and you go out and buy a bigger property. This might mean a bigger home, a bigger investment property. If you go out and invest all this money into a real estate investment, a like-kind exchange. Well, now you get to defer all of these taxes. You don't have to pay any taxes on this profit and now you own a bigger property, which means you're going to be making more money, you get a bigger tax deduction and now you get bigger cash flows. And guess what? Well, then you can double this property to $400,000 and then you do it all over again... The IRS lets you not pay taxes on it when you do that. If you do this exchange, which is called the 1031 exchange. The 1031 exchange lets you flip real estate property to real estate property without having to pay taxes on the sale."
By Minority Mindset | November 12, 2023 | Pending
From video
How The Wealthy Pay No Taxes (And How You Can Too) | Jaspreet Singh 00:26:48 - 00:28:15
Interpreted Prediction
A 1031 exchange allows real estate investors to sell an investment property and reinvest the proceeds into a new, 'like-kind' property without paying capital gains taxes on the profit, deferring the tax liability until the property is eventually sold without another 1031 exchange.

Prediction Details

Topic
1031 Like-Kind Exchange for Real Estate

Comments

0 comments

Be the first to share your thoughts.

Like this prediction?

Join to make your opinion count.