Section 1031 of the Internal Revenue Service Tax Code provides for the tax deferred exchange of like kind properties. Any real property held for investment or real property used in a trade or business can be exchanged for any other real property held for investment or any real property used in a trade or business. The tax code provides for one of the best re-investment strategies and the indefinite deferral of capital gain taxes which would ordinarily arise from the sale of investment property. Exchanging defers the realization of the capital gain tax, leaving the property owner with substantially more proceeds to reinvest in a replacement property. Every dollar saved in taxes allows an investor to purchase substantially more real estate. The tax code states: "No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment purposes if such property is exchanged solely for property of like-kind which is to be held for either productive use in trade or business or for investment purposes."

Investors can accomplish virtually any investment objective with tax deferred exchanges including greater leverage, property diversification, freedom from joint ownership, improved cash flow, geographic relocation, and the consolidation of multiple business or investment properties.

An experienced "Qualified Intermediary" can provide investors the highest level of expertise and security of funds in investment strategies that can defer payment of capital gains indefinitely.

Whether you are entering, exiting, or repositioning hotel investment, Coldwell Banker Commercial can assist with your Section 1031 tax deferred planning and help locate investment property that meets your specfic requirements.

Visit www.tsgre.com for more information about Section 1031 Tax Deferred Property Exchanges.