Many people talk about avoiding capital gains tax when selling a property. Maybe you’re wondering how you can do the same. The accurate term is Tax Deferred Exchange – or 1031 Exchange. If you’re considering one, you definitely want the help of a 1031 exchange expert.

Today we’re talking with David Moore, co-founder of Equity Advantage, a firm that specializes in tax-deferred investments, in particular IRS section 1031 exchanges.

In 1031 Exchanges, How Can I Avoid Capital Gains When I Sell Property?

David Moore: Well, we don’t. And the IRS doesn’t like us talking about avoiding, so we’re going to talk about tax-deferred exchanges. You’re deferring the taxes, too.

David Moore: So, when you’re disposing of a piece of property that’s been held for investment, if you’ve got something else you’d like to buy that’s of like kind and you would like to defer all your tax, we simply structure a 1031 Exchange. That’s going to allow the person, if they meet all the criteria to defer all capital gains tax in that transaction. And as I said, some people reference this as a “tax free exchange.” It’s not. It’s tax deferred. At some point, you’re going to realize the gain and have to pay the tax on that deferral... 

For the full transcript watch the video below or head to 1031exchange.com.