1031 Exchange Explained
1031 Exchange Explained
IRC Section 1031 allows a
property owner of investment
investment property to exchange
investment property and defer paying federal and state capital gain taxes (20%+ applicable state taxes) in the event that they purchase a like-kind investment property. A tax-deferred exchange is a method by which a
property owner trades one or more relinquished
investment properties for one or more replacement
investment properties of like-kind, while deferring the payment of federal income taxes and some state taxes on the transaction. 1031 Exchanges structured as
tenants in common provide property owners a range of opportunities to meet personal investment objectives. This includes
investment property type and geographic diversification, and, most importantly, the elimination of day-to-day
investment property management obligations.
Contact us today if you are interested in rolling over an
investment property investment through a 1031 exchange. We can match you with a licensed broker who can manage your exchange.