As a serious investor, you want to make your portfolio as profitable as possible. You want to spend as little money as possible on expenses like taxes and have more money left over to put into new assets.
With that, you need to know how to move your money around to avoid racking up a large tax bill to the IRS and state revenue department. You can use a 1031 tax-deferred exchange in Davenport, IA, to make your investments as profitable as possible.
Lowering Your Tax Burden
When you use this type of exchange for your portfolio, you can move your money around without having to cash out and pay taxes on the dividends. With this transaction, you can cash out one asset or investment and move the money within your portfolio into a new purchase. Because the money never hits your personal checking or savings account, you do not have to pay taxes on it.
You also defer the taxes that you have to pay on cashing out the transaction until later. You can make full use of money that you have right now and generate more money that you can use to pay your tax bill with at a future date.
A 1031 tax-deferred exchange in Davenport, IA area, can offer you a number of benefits. It lets you move money around your portfolio and saves you from having to pay out taxes right now.
