Real estate may help build wealth through consistent income and protection against inflation. Selling a real estate asset, however, can trigger capital gains and depreciation recapture taxes that may significantly reduce sales proceeds.
Inland's animated video, Navigating Your Exchange Options: 1031, 721, or Both?, covers the questions an investor faces before a sale. It looks at two tax-deferral strategies, the 1031 exchange and the 721 exchange into an UPREIT, and how each one fits different goals.
Instead of simply explaining the rules, this video demonstrates through hypothetical scenarios that illustrate how the right choice can change from one investor to the next.
Running the numbers on a real estate asset sale? Inland’s 1031 Exchange Calculator estimates the amount of tax an exchange may defer.*
*Results are hypothetical estimates for informational purposes only, are not guaranteed, and not a substitute for professional tax advice.