More On 1031 Exchanges

Realty Times recently ran two stories explaining the mechanics of, and the benefits in using, so-called 1031 exchanges, in which real estate investors are able to defer payment of income taxes due (and possibly avoid the income taxes altogether if this tax deferral technique is continued by an investor indefinitely) on their profitable real estate investments. For those who are interested, see:

• Getting A Handle on 1031 Exchange Rules,
• 1031 Exchanging from Brick & Mortar to Oil & Gas.

Success in using this tax deferral technique will depend on the level of expertise and integrity of the company used as a 1031 exchange intermediary. For some real estate investor horror stories that have occurred when the wrong intermediary is used to conduct the exchange, see 1031 Exchange Intermediaries - Problems.