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Tom Meaglia, ChFC®, AEP®,
CLU®, CRPC®, MSFS
Chartered Financial Consultant
Investment Advisor Representative
Chartered Retirement Planning Counselor
CA Insurance Lic. #0567507
Meaglia Financial Consulting
2105 Foothill Blvd., #B140, La Verne, CA 91750
Toll Free: 800-386-3700
Bus: 909-593-6105
Cell: 818-681-8600
Fax: 909-593-6120
Email: tom@meagliafinancialconsulting.com
Website: www.meagliafinancialconsulting.com
Mention a Section 1031 exchange, and many investors in real estate immediately think, "minimize capital gains taxes." But a 1031 exchange may provide other advantages.
Of course, there are requirements. Proceeds from the sale must be held in escrow by a third party and then used to buy the new property. You can't receive the proceeds, even temporarily. The properties being exchanged must be considered like-kind by the IRS for your capital gains taxes to be deferred. Taxes are due when the property is sold. But if used correctly, there is no limit on how frequently you can exercise 1031 exchanges. So, in theory, the exchange can be used to defer taxes for your lifetime, which leads to another advantage.
Also, consider exchanging one large real estate investment for several smaller ones. This strategy can broaden your property portfolio by type and location and help you respond to changing real property markets, as your needs may require.
A 1031 exchange could potentially build wealth. However, understanding the complex rules requires even the savviest investor to enlist professional help.
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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
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Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
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