The sellers of real property are often to preoccupied with the “Sale” to realize that if they were more strategic in their investment decisions, they could reap long term financial benefits. The concept is simple, don’t touch the cash! The object in an exchange is to defer the capital gain tax, recapture of previously taken depreciation and any state gain tax. If you go to the closing without employing a Qualified Intermediary (QI) to 
handle the sale as an exchange, the tax will be triggered as soon as the cash is touched. The time to defer the tax is before the buyer shows you the cash. If you focus on the cash, the fatal attraction, it will cloud the strategy to successfully do a Section 1031 Exchange. Employing a QI is paramount to setting up the sale as an exchange with all of its tax benefits.
Don’t become another tax fatality, defer the taxes with a Section 1031 Exchange!
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