Real Estate Tax Deferment

This is part three of a series.  Click here to go back to "An Overview of the Three D's of Real Estate Tax"

Being able to defer paying taxes and instead use your profits to reinvest into real estate is one of an investors favorite tools.  This deferment is available because the government is in favor of people investing in real estate. 

1031 Exchange
One of the most popular exchanges is the 1031 exchange.  This allows you to sell a piece of real estate and reinvest all of the earned money into another property without paying taxes.  For more information, click here. 

Roll Over an IRA
The IRS allows you to roll over your IRAs into investment real estate.  This could be a great way to diversify your portfolio.  You could reinvest the cash flow you get from the property or use it for extra income.  You would need to speak with an accountant and financial planner to get a better understanding of the limitations and potential.