David Moore of Equity Advantage, nationally recognized leader in 1031 Exchange facilitation, answers whether you can defer taxes on free and clear owned property. Moore clears up some misunderstandings on 1031 exchanges, and how their deferral of taxes is much simpler than commonly thought.
The simple answer is yes. The tax consequence of your transaction has nothing to do with debt and equity. I believe one of the biggest misunderstandings in 1031 is what the requirements of an exchange are to be totally tax deferred. I hear many people say, “Well, you have to replace debt in an exchange,” and that’s totally untrue. – David Moore, Equity Advantage
If you’re thinking of selling your property, work with a broker who understands 1031 exchanges. Call René Nelson at 541-912-6583.