An improvement 1031 exchange is when you are doing a standard 1031 exchange and you use the proceeds of the relinquished property to acquire and improve the replacement property as part of your 1031 Exchange transaction.
An Improvement 1031 Exchange is a great way to upgrade your property while still taking advantage of the tax benefits of a standard 1031 exchange. By using the proceeds from your relinquished property to improve the replacement property, you can increase the value of your investment while still deferring capital gains taxes. This makes the Improvement 1031 Exchange an ideal solution for investors looking to improve their portfolio without incurring a large tax bill. Of course, there are some restrictions and requirements that come with this type of exchange.
As your certified Improvement 1031 Exchange Specialist, Freedom 1031 will work with you to unlock the value in your investment and help you navigate the process and take advantage of all the tax benefits available. We have a proven process that has helped our clients maximize their investment return and reach their goals.
Contact us today to learn more about how we can help you structure an Improvement 1031 Exchange that meets your needs and objectives.
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A reverse 1031 exchange is when you purchase your replacement property before you close on the sale of your relinquished property. It involves additional paperwork and procedures on top of the standard 1031 exchange.
Learn MoreA traditional forward 1031 exchange is when you sell investment property (relinquished property) and roll all, or part, of the sale proceeds into the purchase of a new investment property (replacement property).
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