Five Reasons to Exchange Volume #2005, Issue #2 

Section 1031 tax deferred Exchanges continue to increase in popularity as more investors nationwide discover the wide range of investment objectives that can be easily met through Exchanging.

PRESERVATION OF EQUITY
A properly structured Exchange provides real estate investors with the opportunity to defer 100% of both Federal and State capital gain taxes. This essentially equals an interest-free, no-term loan on taxes due until the property is sold for cash!

LEVERAGE
Many investors Exchange from a property where they have a high equity position or one that is "free and clear" into a much more valuable property. A larger property produces more cash flow and provides greater depreciation benefits, which therefore increase the investors return on their investment.

DIVERSIFICATION
Exchangers have a number of opportunities for diversification through Exchanges. One option is to diversify into another geographical region such as Exchanging out of one apartment building in Denver, Colorado for two additional apartments-one in Sacramento, California and one in Dallas, Texas. Another diversification alternative is acquiring a different property type such as Exchanging from several residential units to a small retail strip center.

MANAGEMENT RELIEF
Some investors accumulate several single family rentals over the years. The on-going maintenance and management of what can be a far-reaching group of properties can be lessened by Exchanging these properties for one better suited to on-site maintenance and management. Exchanging into a single apartment complex with a resident manager is a good example of this.

ESTATE PLANNING
Sometimes a number of family members inherit one large property and disagree abut what they want to do with it. Some want to continue holding the investment and some desire to sell it immediately for cash. By Exchanging from one large property into several smaller properties, an investor can designate that, after their death, each heir will receive a different property which they can either hold or sell.

Compliments of

Whitney Graham
Business Development
(916) 806-1468 cellular
wgraham@ncs1031.com

NCS Exchange Professionals
4811 Hopyard Rd. Suite G-6
Pleasanton, CA 94588
1-866-USE-1031
www.ncs1031.com

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Ellen Grace with

Email: Realtor@EllenGrace.com
(530) 448-3068
Office Direct (530) 582-2455

Fax: (530) 579-3234