Protect Your 1031 Exchange on Investment Property in California

1031 Exchanges are an excellent way for you to defer paying taxes on the sale of investment property and use all the sale proceeds to invest in a new investment property. The Internal Revenue Code rules on 1031 Exchanges are somewhat rigid and if not followed can result in your having to pay Capital Gains taxes on the sale of your investment property. To avoid this pitfall, consider talking to us about including in your 1031 Exchange agreement with your Accommodator (someone who helps you complete your 1031 Exchange) a specific clause that allows you to divert the proceeds from the sale of your property to an Installment Sale Trust. So, what is an Installment Sale Trust (IST) you ask? Read our blogs or contact us for more information.