(The following is an excerpt from our 1031 Advisor newsletter located here )
Harry Potter learned to use the disillusionment charm to reveal and uncover hidden items and secrets. We will uncover a few financial secrets today using a Section 1031 disillusion charm of our own. We will reveal that Section 1031 exchanges can:
- provide a return on investments that far exceeds typical business returns
- provide more cash to invest
- result in lower debt, lower interest expense, lower income taxes and higher profits
Charming indeed!
Normally when an investment or business asset is bought, a rate of return is computed using the expected revenue earned over the life expectancy of the investment. This includes every type of business or investment asset. However, for today, we will use the purchase of truck used to haul business assets over long distance a.k.a. tractor trailer.
