Delay Your Taxes Even Longer...
... is something that almost everyone wants to do
A 1031 Exchange is something that I have spent a lot of time on over the years
Its a tax strategy used when selling a property
that allows the seller to defer (delay) the tax due
until a subsequent sale has been completed
this allows them to put more of the money to work
and pay the taxes somewhere down the road
I have discussed it in a number of forums recently
in the spirtit of contribution
to the real estate community
there is another layer that can be added
when a seller decides that they want to take their profits
and use them for something other than a real estate purchase
let's suppose that you have a need for some of the money now
but not all of it right away
and what you would really like
is to have an income from the sale
for 10, 20 or even 30 years
you could "become the bank"
and finance the purchase for your buyer
they would give you a down payment
and make monthly payments
just like they would if they got the money from their bank
the difference is that you receive installments each month
and would only pay tax on what you receive in a year
based on your cost basis and profits from the sale
which allows you to spread out the tax due for many years
you should definitely talk to your tax planner
before you make any moves like this
but for some sellers and investors
this is the exact right strategy
today's show walks you through a number of scenarios
