Tax Deferred Exchanges

A tax-deferred exchange is a legal process of deferring capital gains when purchasing property and reducing or eliminating taxes on the sale of an existing property.

This is one of the techniques commonly used by new homeowners on Hilton Head Island to limit their current tax exposure and reduce the cost of buying a new island home.

Here’s how it works: you buy a new property on Hilton Head Island or the surrounding area and sell a property, your previous vacation home, for example, in another state or area. As long as the properties are considered “like-kind,” then taxes can be deferred (meaning put off to a later date, maybe forever).

The Realtors at the Dunes Marketing Group can help walk you through the process, including recommending experienced local attorneys and financial consultants.

The Federation of Exchange Accommodators' professional association website
1031 Exchange FAQ's (Federation of Exchange Accommodators)
http://www.1031.org/about1031/faq.htm