American Real Estate Investments Helps Property Investors Make Tax-Free Upgrades Using IRC 1031 Exchange

DALLAS, TEXAS, August 4, 2016 (Newswire.com) -  American Real Estate Investments LLC (AREI), recipient of the 2016 Turnkey Provider of the Year Award at the Think Realty Global Investment Conference in San Fransisco, now makes it easy for property owners to upgrade to higher-value properties by facilitating IRC 1031 Exchanges. A relative unknown - yet extremely powerful - investment tool, 1031 Exchanges allow investors to defer paying any capital gains tax when using profits from the sale of a lower-valued property to purchase a similar turnkey real estate property of equal or greater value.

 “A properly managed IRC 1031 exchange allows property investors to greatly increase their investment opportunities,” explains American Real Estate Investments Chief Operating Officer Carl Dean. “Rather than having to turn over tens of thousands of dollars in taxes to the government, if you follow the 1031 exchange rules you can take the profits from the sale of one investment property, and invest it all into another property worth far more than would otherwise be possible.”

As the housing market continues to rebound from the recent recession, Dean went on to explain, many property investors now own cash flow properties that could be sold at a profit. “Take for example someone who bought a rental property in 2008 for $200,000, and could sell it today for $400,000. Without the tax deferment allowed in an IRC 1031 exchange, they would pay about a third of that profit in taxes, leaving less than $100,000 for re-investment in another property. But if they sell their property using the IRC 1031 Exchange option, they can invest the entire $200,000, giving them far more buying power.”

While the rules and regulations for an IRC 1031 exchange are fairly complex, American Real Estate Investments’ property and investment experts are able to ensure the transaction goes smoothly. AREI is authorized to serve as a Qualified Intermediary, a requirement of the IRC 1031 Exchange transaction. Perhaps more importantly, AREI maintains a comprehensive, up-to-date inventory of available high-value properties in growing markets, making it easy for investors to identify their next purchase within the exchange’s required 45-day window following the closing of the original property.

 “A big part of our mission at American Real Estate Investments,” says Dean, “is to make it easy for Americans to understand and take advantage of the many lucrative US property investment opportunities that exist within real estate. The IRC 1031 Exchange is definitely an option we think more people should be exploring.” 

To learn more about the services American Real Estate Investments provides for real estate investors, visit https://areiusa.com

Source: American Real Estate Investments LLC