1031 Tax-Deferred Exchange Benefits for Real Estate Investors in Boise, Idaho
If you haven’t heard about it from us already, a 1031 Tax-Deferred Exchange will become your best friend as a real estate investor! This section of the IRS allows real estate investors to sell their property to use the profits to purchase another property of equal or greater value. This exchange means you can defer paying taxes on your profits indefinitely. There are many additional ways to leverage a 1031 and receive the 1031 tax-deferred exchange benefits.
Idaho is a real estate investor’s dream because it is easy to leverage a 1031 exchange. We’ll cover why 1031 exchanges are so prevalent in our area.
1031 Tax-Deferred Exchange Benefits
#1: Idaho Is a Landlord Friendly State
We discussed here how Idaho is a landlord-friendly state. The Boise area has a high-quality, long-term tenant base, with evictions being a rare case. In recent years, vacancies have been below 1%. Lastly, Idaho has no laws regarding how an investor can conduct business. There are no rent controls, no random code violation inspections, and no government intrusion. Idaho is one of the most, if not THE most, landlord-friendly state in the country.
Benefit #2: Continue to Roll Equity from Property to Property
A “Reverse 1031 Exchange” allows investors to buy their new property first and then sell it later. This is a massive benefit to out-of-state investors wanting to move their properties, sale profits, and equity to Boise since the reverse 1031 exchange delays paying capital gain indefinitely. One of the most beneficial aspects of reverse exchange is that you eliminate the stress of having to purchase under a specific timeline that occurs when utilizing a traditional 1031 exchange.
Boise Turnkey specializes in real estate investing because we are investors ourselves. We are uniquely positioned to guide new and seasoned Boise investors through their 1031 exchange journeys. But, we take it a step further–1031 exchanges are specialized, so our team at Boise Turnkey Properties partners with a local 1031 exchange provider, or “intermediary,” to ensure that the process is smooth and stress-free for our investor clients.
At Boise Turnkey Properties, we guide our clients in both 1031 exchanges and would love to help guide you! Contact our team at Boise Turnkey Properties today. We would be honored to help you through the 1031 exchange process personally. Call us today at (208) 957-0870 or email us at info@boiseturnkey.com.
