(The following is an excerpt from our 1031 Advisor newsletter located here )
How can 1031 Exchange Management help your Company achieve its operational goals? In spite of the technical nature of tax deferred exchanges, these transactions can be handled with a minimum of complexity to help your Company achieve its business goals. Simply, the Company can reduce its income tax expense and use the monies saved to invest in more productive assets thus increasing its income, decreasing its expenses, increasing its profitability and improving its growth opportunities.
Step 1: Define the Company’s Goals. Whether they are to conserve cash, strengthen the balance sheet, reduce expenses, and/or invest in productive assets, your Company can improve your business processes by capturing your existing equity and continuously reinvesting it into the business while conserving you cash.