Taxes in the United States – or anywhere else in the world – can be complicated. For example, do you know not all people will pay their income taxes?
In 2016, at least 44 percent of the households in the country didn’t pay federal taxes. This number is equivalent to over 75 million. By 2017, the analysts believed that the number could be around 43.9 percent.
Not everyone who doesn’t pay these taxes can be considered an evader. Some of them don’t have an income to declare. There are others who are way below the poverty line. Then some people get smart about their federal taxes. They itemize their deduction and take advantage of the different tax credits. They also learn to maximize certain IRS provisions. These include 1031 exchange.
Learning about 1031 Exchange
There’s no better way to learn about 1031 exchange than to talk with professionals. A company called 1031ex.com, for example, can guide you through the process and also function as an intermediary.
Many factors can make this provision complex and confusing. It involves not only one but at least two properties. There are also different parties. These include the exchanger and the buyer of the property.
In hindsight, it is a part of the IRS code that can let you delay or postpone realizing the capital gains tax through a property replacement. The value of such property may be equal or higher than that of the exchanger.
In a survey conducted by NerdWallet, 48 percent of the respondents didn’t know their tax bracket. About 1 in every 4 of them didn’t have an idea about a tax bracket.
Tax laws can certainly be headache-inducing, but it doesn’t mean you cannot learn them. Getting help from the experts is one important step to make the process easier.