Like Kind Exchanges: Capital Gains versus Ordinary Income
Stephen Robison J.D. LL.M. - Strategic Property Exchanges, LLC
January 3, 2008
When clients engage in a Section 1031 exchange, they often can defer capital gain taxes on the sale of investment real estate at a rate of 15% (federal tax) plus state tax. If the client has depreciation on the property sold, then the client’s tax rates are higher based on the type and amount of depreciation taken. One recent planning technique, which is causing commotion in real estate circles is the use of a self-directed IRA or self-directed Roth IRA to hold real estate properties in an attempt to defer taxes on the sale of the investment property.
Want the Rest of the Article? - It's Free to Members
Archived articles are reserved for CPA-Resource.com members. To access this content, please log in or create a new account. Membership to CPA-Resource.com is free! Get instant access to all the CPA content you need to help your organization stay current.