Welcome to the world of IRC Section 1031 Exchanges. They are unique instruments that allow investors to make the most of their real estate ownership. This tool is available to all real estate owners (not only for the wealthy). It’s a very affordable process, though technically specific and requires expert knowledge of the process.

There are two general benefits IRC 1031 provides to those who use it . . . building wealth and creating more utility from your real estate ownership.

Building wealth occurs in the following ways:

• Defers payment of tax into the future with cheaper dollars.
• Leverage your tax deferral to purchase more real estate (generally five times the deferred tax).

Improving the utility of the real estate you possess can mean the following:

• Trade a vacant lot for an income producing property.
• Move your real estate to better geography.
• Reduce the amount of your management activity needed to generate revenue.

Petkovsek & Moran, LLP is very well versed in using this tool and has assisted investors, Realtors, developers, accountants, attorneys, title companies and others on more than 300 exchanges.