The Aroma of Persuasion
Our sense of smell is so powerful that it can quickly trigger associations with memories and emotions. Our olfactory system is a primitive sense that is wired directly to the center of our brain. By four to six weeks of age, infants can tell the difference between their own mother's scent and that of a stranger. Almost everyone has experienced situations in which a smell evoked a nostalgic memory. or or a seller it is better to do a little research and consult your tax advisor to get an estimate on your tax exposure.

· Several assets such as boats, horses or cattle etc. qualify for the 1031 exchange but on the same hand only real estate can be exchanged f

Section 1031 of the Internal Revenue Code (IRC) defines the 1031 exchange. 1031 exchange also known as Like kind exchange specifies that if an asset that is most often a land or a building, is sold and the proceeds of the sale are then reinvested in a similar type of asset then there is no gain or loss and the capital gains taxes are deferred.

A 1031 exchange is an ideal way to suspend the taxes that are immediately due after the first sale. For instance if an investor purchases a residential property for say $250,000 and sells it for $30,000 after 5 years, the profit of $50,000 which he incurs will be subject to capital tax. But if the profit so accrued is invested in another similar kind of commercial real estate, there will be no taxation on it. So his taxes will be deferred to some date in future.

1031 exchange is a source to save your money being spent in capital taxes, but on the same hand an individual should be careful and keep few points in mind before entering this exchange.

· Before entering the 1031 exchange, whether as an investor or a seller it is better to do a little research and consult your tax advisor to get an estimate on your tax exposure.

· Several assets such as boats, horses or cattle etc. qualify for the 1031 exchange but on the same hand only real estate can be exchanged fo

asset then there is no gain or loss and the capital gains taxes are deferred.

A 1031 exchange is an ideal way to suspend the taxes that are immediately due after the first sale. For instance if an investor purchases a residential property for say $250,000 and sells it for $30,000 after 5 years, the profit of $50,000 which he incurs will be subject to capital tax. But if the profit so accrued is invested in another similar kind of commercial real estate, there will be no taxation on it. So his taxes will be deferred to some date in future.

1031 exchange is a source to save your money being spent in capital taxes, but on the same hand an individual should be careful and keep few points in mind before entering this exchange.

· Before entering the 1031 exchange, whether as an investor or a seller it is better to do a little research and consult your tax advisor to get an estimate on your tax exposure.

· Several assets such as boats, horses or cattle etc. qualify for the 1031 exchange but on the same hand only real estate can be exchanged f

ls it for $30,000 after 5 years, the profit of $50,000 which he incurs will be subject to capital tax. But if the profit so accrued is invested in another similar kind of commercial real estate, there will be no taxation on it. So his taxes will be deferred to some date in future.

1031 exchange is a source to save your money being spent in capital taxes, but on the same hand an individual should be careful and keep few points in mind before entering this exchange.

· Before entering the 1031 exchange, whether as an investor or a seller it is better to do a little research and consult your tax advisor to get an estimate on your tax exposure.

· Several assets such as boats, horses or cattle etc. qualify for the 1031 exchange but on the same hand only real estate can be exchanged f

e in future.

1031 exchange is a source to save your money being spent in capital taxes, but on the same hand an individual should be careful and keep few points in mind before entering this exchange.

· Before entering the 1031 exchange, whether as an investor or a seller it is better to do a little research and consult your tax advisor to get an estimate on your tax exposure.

· Several assets such as boats, horses or cattle etc. qualify for the 1031 exchange but on the same hand only real estate can be exchanged f

or or a seller it is better to do a little research and consult your tax advisor to get an estimate on your tax exposure.

· Several assets such as boats, horses or cattle etc. qualify for the 1031 exchange but on the same hand only real estate can be exchanged for a real estate. So the real estate should be an investment property. A building purchased for renovations and selling and land purchased for construction of houses etc. cannot qualify for 1031 exchange because in such instances the owner does not intend to hold on to them for a period of time for investment reasons.

· Further in order to have a cent percent tax deferment on the disposition of property, there are three basic steps to be followed. Firstly right after the sale of the original or relinquished property, it is necessary to acquire a replacement property as early as possible. The replacement property must be equal to or greater than the value of the relinquished property. Secondly those who wish to have 100% capital tax deferment must reinvest all of their net equity from the surrendered property in the replacement property. Finally one must assume debt on their replacement property that is equal to or greater than the debt on the original property. In case the debt on your replacement property is less than the debt on your original property