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To 1031 or Not To 1031
Tax strategies abound these days, and for investors, the new tax law does not make it any easier.
On top of that, sales people for a variety of financial services offer a plethora of “1031 alternatives”. If
the tax law itself doesn’t make you dizzy, the loopholes and strategies are like a merry-go-round on
steroids.
I have spoken with some very smart, respectable financial advisors who have 1031 alternatives which
include charitable portions and substantial tax delays. Without question worth consideration,
particularly for older clients.
However, the good old 1031 exchange is easy to understand and hard to beat.
If you’re considering the sale of an investment property, speak with a trusted consultant about all your
options. Look closely at the 1031 option. If you get a presentation for a 1031 alternative program, see if
your CPA and financial advisor can sit in and advise you. Maybe even your real estate broker. Listen to
each piece of advice, weigh it from where it comes, and make your decision. A big plus of the 1031
alternative could be providing support to your favorite charity. Could be worth considering.