The Impact of a Sale Leaseback | Chelsea Mandel

When using a 1031 exchange to defer the tax on investment property, the depreciated cost basis of the relinquished property is carried-forward to the replacement property and any subsequent replacement properties purchased in the same line of exchanges. This significantly dilutes the depreciation benefit.

Inflation reaccelerated in July for the first time in 13 months. But beneath the surface of the 3.2% headline number revealed in Thursday's Consumer Price Index (CPI) report are several signs the Federal Reserve's fight against inflation is headed in the right direction.

In the US, the federal tax code can benefit owners of businesses such as wineries and vineyards under a real estate investing tool known as Section 1031 exchanges. But another section of the tax code may be even more beneficial—and less restrictive—for both sellers and buyers.