1031 Exchange Explained

1031 Exchange Explained

A tax-deferred exchange is a method by which a real estate investor trades one or more relinquished income real estate for one or more replacement income real estate of like-kind, while deferring the payment of federal income taxes and some state taxes on the transaction. In turn, internal revenue code provides that no gain or loss shall be recognized on the exchange of income real estate held for productive use in a trade or business. 1031 Exchanges are typical sales and purchases that involve the same exact ingredients as any other sale or purchase, without the capital gains. The only real difference is the real estate investor is increasing his or her selling and buying power by electing to rollover their investment into another like kind 1031 tax real estate. No other aspects of the transaction are affected.

Contact us if you are interested in retaining the wealth of your income real estate investment and we will match you with a qualified 1031 tax advisor in your area.



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