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Why Uncle Sam likes tax-deferred exchanges

Realty Tax Tips-Part 6: Build wealth, avoid taxes, secure dream home

(This is Part 6 of an eight-part series. Read Part 1, Part 2, Part 3, Part 4, Part 5, Part 7 and Part 8.) If you enjoy paying capital gain taxes when selling an investment or business property, you probably won't want to learn how to pyramid your real estate wealth by legally avoiding taxes on profitable sales. However, if you prefer to build realty wealth without paying taxes, as millions of other investors and major corporations do, read on. Or you might enjoy selling your rental property at a profit, perhaps an apartment or commercial building, and using those funds to acquire your ultimate dream home without paying capital gains tax. Read on. Purchase Bob Bruss reports online. UNCLE SAM ENCOURAGES TAX-DEFERRED EXCHANGES. Ever since 1921, Internal Revenue Code 1031 has encouraged real estate investors to trade one (or more) "like kind" investment or business property for another property (or more) of equal or greater cost and equity without paying profit tax. Uncle Sam views a...