AAOA Blog

Here’s An Easy Way to Learn Why You Should Consider a Section 1031 Tax-Deferred Exchange on Your Income Property

Ken Tharp of Iowa Equity Exchange has developed a fun and easy way for you to determine whether you would realize the greatest gains by:

• Holding  your income property, or
• Exchanging it under the 1031 Exchange rules.

His new Buy and Hold vs. Buy and Exchange Calculator is an interactive tool that compares buying property and holding it to buying the same property but using a Section 1031 tax-deferred exchange after five years to re-leverage the investment into more valuable property.  To use the spreadsheets, you simply plug in the specific data from your initial purchase, including purchase price and fair market value, debt information, and the amount of your down-payment, and the calculator automatically does the rest. 

The Buy and Hold vs. Buy and Exchange Calculator can estimate your gains if you hold, and compare that against an exchange.  It’s interactive nature makes it easy to use to evaluate any property you may be thinking of selling, or putting an offer on. The spreadsheets can also be used to play with different market factors.  For example, you can change the rate of appreciation to determine how any expected changes may affect your gains over ten years. Click here to see a sample spreadsheet.

To order your own interactive version of this calculator,  email your request to contact Ken Tharp, Iowa Equity Exchange, info@iowaequityexchange.com.

Iowa Equity Exchange helps you avoid the 25-30% tax hit when you sell your property. Ken Tharp, owner of the company, brings 30 years of real estate investment experience to the world of Section 1031 tax-deferred exchanges.  He offers a no cost, no obligation consultation on how to ensure the profits from your sale are maximized.

For more investment information, read Secrets of Evaluating and Selecting Undervalued Properties.

American Apartment Owners Association offers discounts on products and services related to your commercial housing investment, including real estate forms, tenant debt collection, tenant background checks, insurance and financing.  Find out more at www.joinaaoa.org.

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