Anchorage Commercial Real Estate
Jack White Commercial
Serving Anchorage and All of Alaska Since 1953
Utilizing 1031 Exchanges is a method seasoned investors and property and business owners use to shield their assets from taxation so they can grow their investment portfolios! At the foundation, 1031 Exchanges are where you exchange a 'like-kind' asset for another 'like-kind' asset. Property for property, business for business, those are considered 'like-kind'. If you were to sell a property and realize a gain on the property, you would have to pay capital gains tax. Exchanging the property for another can and will shield you from paying capital gains tax.
How does this help someone wanting to build a portfolio? Think of it this way: start small and finish big. The strategy is simple! Keep trading up until you have a large asset to 'cash out' with and pay your capital gain tax in one single sum. The idea is to let your properties earn money for you and hold off paying tax on that 'income' until you're ready to completely cash out for retirement or whatever your plans are!
Greg can help you get started with building your real estate/business assets and get you in touch with the Alaska Exchange Corporation for more details on 1031 Exchanges.
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