Woodland Hills, California (PRWEB) November 02, 2012
The 1031 Exchange alternative is emerging as a a lot more well-liked avenue for real estate investors, offered the election-year uncertainty over the future of capital gains taxes, states Kevin M. Levine, Executive Vice President of Peak 1031 Exchange (http://www.peakexchange.com). The political brinkmanship in Washington more than extending or ending Bush-era tax cuts has left investors in the lurch concerning the standard asset disposition procedure that is a natural part of the ebb and flow of industrial real estate. Deferring capital gains is a major consideration in a typical sale of property, and numerous are opting for the safety of the like-kind exchange for house until the dust settles.

Levine explains that, due to the stronger returns on actual estate compared to classic equities in 2012, commercial true estate has seen healthful activity in main and tertiary markets in 2012 from institutional as well as smaller investors. For the modest and mid-size investor, a prospective increase in capital gains if tax cuts are permitted to expire creates substantial barriers barring their contribution to industrial true estates current expansion. An enhance in capital gains tax cuts will have the most impact on quick term capital gains, defined by the tax code as profits from assets held for far more than one particular year, which presently follows the identical individual tax price.

Weve observed a tremendous spike in 1031 Exchange transactions with our client base in wake of the possible boost in the capital gains taxes, states Levine. Our investor base is leveraging the positive aspects of the 1031 Exchange method to reduce their tax price by classifying the proceeds as ‘long term capital gains,’ ” at the moment at 15% with a prospective boost to 20% in January 2013 if there is no extension of tax cuts. It makes sense for smart genuine estate investors who dont want to see their expansion into new markets encumbered by tax issues to contemplate the positive aspects of a like-kind exchange procedure.

Peak 1031 Exchange, Inc. is one particular of the entities in the Peak Corporate Network headquartered in Woodland Hills, California. In addition to commercial loan modifications, the Peak Corporate Network entities offer mortgage lending, loan servicing, short sale solutions, foreclosure services, actual estate brokerage and escrow services. For a lot more details, visit http://www.peakcorp.com.

The Peak Corporate Network is a brand that represents a group of connected separate legal entities, each delivering its exclusive set of true estate services.