The Pepper Group
Diversified

3865 E Via Del Verdemar Tucson, AZ 85718

(520) 977-0003
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Why 1031 Tax Exchange?

            Sales Price:    $250,000.00
            Loan:           $ 50,000.00
            Proceeds:       $200,000.00
            Basis:          $ 50,000.00
            Gain:           $200,000.00

   Tax Rate at 40% combined federal and state tax
   
SALE                                           EXCHANGE
Tax due: $200,000.00                         $      0.00
         x       40%
         ___________
         $ 80,000.00

Cash available for reinvestment:
         $120,000.00                         $200,000.00
        
I. MAXIMIZE GROWTH AND LEVERAGE
Acquiring a property with a 25% down payment
Value:   $480,000.00                         $800,000.00
Loan:    $280,000.00                         $600,000.00
Equity:  $120,000.00                         $200,000.00

II. MAXIMIZE CASH FLOW
Acquiring a property of equal value
Value:   $250,000.00                         $250,000.00
Loan:    $130,000.00                         $ 50,000.00
Equity:  $120,000.00                         $200,000.00

Income less debt service:
Rental income at $2,000.00/month
Loan at 10% amortized over 30 years
Income:  $2,000.00                           $  2,000.00
Debt:    $1,140.00                           $    438.00
Net:     $  860.00                           $  1,560.00

1031 Tax Exchange Frequently Asked Questions
1031 Tax Exchange Glossary
Tucson Investments

What is a 1031 Exchange? 1031 exchanges are specifically structured transactions that join together the sale of an old property and the purchase of a new property for the purpose of deferring taxes. 1031 Exchange Experts are primarily used for buying and selling investment and personal real estate. Examples of qualifying property include bare land, rental property, commercial buildings and your primary residence. Please contact The Pepper Group™ Diversified 1031 Tax Free Exchange Specialists at: (520) 977-0003 or info@ThePepper.com.






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The Pepper Group™
Diversified Real Estate
3865 E Via Del Verdemar Tucson, AZ 85718
1-520-977-0003
Tucson Real Estate