How to Exchange
- Sell your property and open the exchange with a 1031 Accommodator.
- Accommodator creates the documents needed and holds the funds from your sale.
- You start looking for replacement property.
- Complete your exchange with one or more properties.
- Any kind of real estate works.
- Try to buy as much as you sold, to save all the taxes.
- Make repairs or improvements to the property and have them count towards the exchange.
What You Get From An Exchange
Save all the tax.
Taxes are 30% to 40% of your profit, that's a lot!
Depreciate what you buy, all over again, and take the tax break on your annual taxes.
Exchange into a better investment. You can even exchange into something that later becomes your residence.