Real Estate Investing Class

Written by Jessica Duquette
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A real estate investing class about the 1031 tax deferred exchange is one of the most important lessons learned as a novice commercial investor. This short yet crucial lesson can help investors maintain the profit realized on property transactions. Without knowledge of this program much of the money earned through the sale of real estate will find its way into the government's wallet.

What Is the 1031 Tax Deferred Exchange?

The subject of the 1031 tax deferred exchange is a topic always covered in a real estate investing class. Usually, when an investor sells an investment property the money earned as a result of that sale (profit) is taxed by the government. In many cases, people spend years and thousands of their own money improving a property for future sale. They hope to walk away with more than the amount invested.

Unfortunately, for people who buy and sell one piece of property, either commercial or residential, the gain realized through land appreciation is highly taxed resulting in a fraction of profit and a lot of aggravation. Learning to avoid these tax liens is imperative if real estate investing is a primary source of income. This investing strategy is covered in real estate investing class work.

A Real Estate Investing Class on the 1031 Tax Deferred Exchange

When 1031 tax deferred exchange is exercised, investors are taking the profit from one property transaction and applying that cash to another investment opportunity. By reinvesting those earnings, investors avoid being taxed on profit. This process enables investors to reinvest this wealth without financial assistance from a third party.

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