Property values have dramatically increased throughout Arizona over the years due to an increase in employers. The state offers a substantial tax benefit to property owners via the Arizona 1031 exchange, also known as the Like-Kind Exchange or Starker Exchange.
As part of the IRS tax code, the 1031 exchange allows individuals to exchange real estate for a "like-kind" asset. You'll be able to defer capital gains taxes while purchasing a new property, although property owners must follow specific rules, and there are limitations to keep in mind.
If you decide to sell your property and keep the profit instead of purchasing another property, you will have to pay capital gain taxes. However, if you purchase a replacement property and receive income from that property, it makes more sense to keep it and continue deferring taxes. It's best to hire a qualified intermediary to help mitigate the 1031 exchange process, which can be quite complicated. Fortunately, The Santistevan Group, through Berkshire Hathaway HomeServices, offer these services to clients!
We provide the absolute finest service, dedication, and local expertise possible to each of our clients. Whether you are looking to buy, sell, or invest, we will help make your home ownership dreams come true. We are always available to answer any questions you may have.Contact Us