March 15, 2008 Elad Bushari

Some real estate investors are opting to pay the capital gains tax on the sale of investment property now rather than defer the gains in a 1031 exchange amid concerns that a new presidential administration might raise the tax rate, according to the Wall Street Journal. A 1031 exchange, also called a like-kind exchange, lets a property owner roll over the capital gains from the sale of an old investment property to a new one, if certain conditions are met. Some investors believe that the current 15 percent capital gains tax rate could rise to 20 percent or 25 percent, so they are choosing to pay the taxes now, the Journal reports.

Elad Bushari

Elad Bushari is the Broker / Owner of Bushari Group Real Estate and a National "30 Under 30" Honoree by REALTOR Magazine in 2009.

Comment (1)

  1. This is really wonderful post. I understood section 1031 exchange would be helpful for us who are investing money in real estate for better profits and future planning.

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