Most individuals who?ve heard of 1031 investments think of real-estate transactions. That is the most well-known type of exchange, but it is far from the only one. Actually, many of us achieve success in 1031 exchanges to defer capital gains taxes when buying and selling URLs, or web site names. These people turn a profit by owning domains and websites, and can often purchase and offload them without paying taxes thanks to the 1031 exchange rules.
Folks who invest in web domains are in the minority of the people that use 1031 exchanges. Domain exchanges and the exchange of other types of personal property only make up a very small fraction, only 3 percentage points or thereabouts, of all 1031 exchanges. But as more folks start investing in web properties and other similar items, the popularity of these kinds of things will only grow.
One reason many of us haven?t yet done it?s perhaps because they don?t get the correct sort of tax and investment advice. Many individuals still think that real-estate investing is the only way to benefit from the deferred taxes offered by a 1031 exchange. There are plenty of alternative routes to take advantage of the tax deferment. This should illustrate the necessity to speak to experienced experts who can advise you so you don?t lose out on prospects.
In the same way that a 1031 exchange defers capital gains taxes on an estate sale and replacement purchase, it defers taxes on the sale and acquisition of web site names. Because a single domain or a portfolio bursting with them can represent a high investment and a massive revenue, the sale will incur taxes. But if the money is used to invest in more domains, then the taxes can be deferred.
This can permit speculators to purchase more valuable site names in the same way it permits investors in real estate to put all of their funds into a different and more profitable property.
From handling 1031 investment property exchanges to web site names and tenants-in-common property, find the information you want at 1031investmentopportunity.com.
Tags: 1031 investment property, 1031 investments, Investing
Source: http://www.financearticlesandblog.com/defer-tax-in-more-than-real-estate-exchanges/
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