When Not To Do A 1031 Exchange
Can you believe that there is actually a point where a 1031 Exchange might not be a valuable investment decision? Well, in some cases, there is a legitimate reason to refrain from using the law. Consider that the purpose behind a 1031 is to keep the taxes that would have otherwise been spent as a capital gains tax upon sale of a property. However, if you can’t do anything noteworthy with the savings by getting an interest rate of investment higher than the time value of the tax, either because of low interest rates or other reasons, then it may make more long-term sense to just pay the tax.
