Investors use IRS Tax Code 1031

Many real estate investors use the IRS tax code 1031 to defer paying capital gains taxes. Under this law if you re-invest what ever your earned in selling a property in another property of higher value then you don't need to pay the capital gains tax.

Investors use this to re-invest their gains in multiple properties and keep from paying taxes. Another new trend is multiple-investors are pooling in their capital resources in buying bigger properties and each investor owns a percentage of the property.

The rise in prices of homes is not just due to low interest rates alone it is also due to the these type of investors who are heavily invested into real estate and if they take out the money they need to pay heavy capital gain taxes so they want to stay invested in real estate and are willing to pool in resources with other similar minded investors. These people are not going sell out and walk away. So the demand continues for real estate in Las Vegas.