Minimize your taxes and maximize your giving this season using 1031 exchanges.
It’s that time of year again. It’s the time when we are split between rushing to beat tax deadlines. It’s also the time when we are often even more inspired to give and help others. 1031 like-kind exchanges are great tools for helping us achieve more and more of this every year.
1031s are ideal for helping real estate investors defer taxes on their gains, and amplify their wealth and income growth. That helps to create additional financial surplus which can then be used to support philanthropic goals. These extra finances can be given annually at the holidays, can be used to boost year-round donations, or even to start a foundation.
This year we’ve seen some great and inspirational campaigns. Kent Clothier went and paid off layaway items for kids. Tony Robbins launched an Instagram campaign that gave 10 meals to those in need for every time a person took on his daily social media challenges. Why not come up with your own innovative way to spread the seasonal cheer too?
For many investors these like-kind exchanges provide strong double digit savings, which are then compounded as they grow, and your 1031s get bigger and broader. You may not personally need the extra finances or gains. You might already give big. And, yes, taxes are in a sense a form of charity. Though most would argue that they are a very inefficient method of giving, and far too many of those that aren’t really in need profit first. So, this is a great way to help make a difference.
Consider a 1031 exchange for your next NY property deal, and support those individuals, and those causes you care about most, and which will be most effective and efficient in helping. If you’ve just bought a property and are selling another you may still be able to take advantage of a 1031 exchange. The same is true if you are in contract to sell an existing investment, and hope to buy more units in the New Year.