WHEN TO CONSIDER A TAX DEFERRED EXCHANGE

When an investor owns property held for investment or for use in a trade or business and one or more of the following events presents themselves, a tax deferred exchange is a viable option.

      1. A business needs to increase size, change location or upgrade their property.
      2. When an investment real estate or certain personal property has maximized the depreciation allowable.
      3. When sufficient equity has been accumulated to allow leveraging into a larger investment with greater return.
      4. When an investor of qualifying property wishes to change the nature of character of the investment.

There are of course many other times and conditions when a 1031 exchange is appropriate.  The above-mentioned are what frequently triggers this action.