Real estate ownership comes with numerous tax benefits, and San Diego Realtor Hazael Garay is here to talk about the 1031 Exchange. This investment property benefit allows you to defer taxes on capital gains by swapping one investment property for another. You can continue to grow your money until you are ready to cash out.

If you're ready to learn more about the 1031 Exchange, reach out to Hazael Garay and she'd be happy to guide you through the process.

Hey there, my name is Hazael, and I am with the Whissel Team.

There are so many tax benefits to owning real estate, whether that's your primary residence or investment properties. And today, I want to talk to you about one benefit for investment properties called a 10-31 exchange. Or it's also known as like-kind exchange. It's where you swap one investment property for another, and you defer taxes on capital gains, and it allows you to keep growing your money and keep it working for you. Like I said, this is a great benefit for you because you can just continue to grow your money and keep using it over and over and over until you are ready to cash out. So what properties are eligible? An investment property, you can exchange it to offer another investment property or a business property.

So what do you need? Well, first, you need an investment property to sell. It could be an investment home that you use, either you rent out or it could be a business. And once you sell it, then you have 45 days to identify one or other properties that you want to make an offer on. Number two, you need a qualified company who is going to keep you in the straight and narrow as far as the, you know, tax implications and also regulations. They will hold the money from the sale, and they will disperse it once you find your second property. Number three, you will need to file form 8824 when you do your taxes, and this will allow you to actually defer those taxes. And number four, you need to find a trusted real estate professional that understands a 10-31 exchange and that will be able to help you sell the current property, will be able to help you identify the next property, and will write a winning offer for you and help you continue to use your money over and over and continue to grow it.

So if you are ready for this, call me at 619-759-7587. I'd be happy to walk you through the process.