1031 Exchange vs Real Estate IRA
Both 1031s and real estate IRAs use property for investment purposes and offer tax-sheltered benefits. However, there are differences in these options investors should understand to determine which transaction best fits their needs.
Real Estate IRAs
|Deadlines to adhere to and holding period||No deadlines or holding period|
|1031s allow investors to exchange like-kind property and avoid capital gains taxes, provided the new property is of equal or greater value than the property being exchanged.||IRAs utilize real estate assets to build wealth specifically for retirement.|
|While investors may exchange a property for one or multiple properties, if the total of these new properties does not match or exceed the value of the original property, taxation on the difference in value/cost comes into play.||Income gained from the sale of property in an IRA reverts directly into the retirement account on a tax-free or tax-deferred basis.|
|Some personal use allowed||No personal use|
Midland IRA and 1031 is knowledgeable and experienced in performing 1031 exchanges and facilitating administrative aspects of real estate IRAs and other self-directed retirement plans.
Contact us today to discuss investment vehicles that best suit your needs and goals.