In real estate, a 1031 exchange is a swap of one investment property for another that allows capital gains taxes to be deferred.
Build Wealth with a 1031 Exchange
If you own investment property and are considering selling and then buying another property,
then you should know about the 1031 tax-deferred exchange.
General Rules of a 1030 Exchange
A 1031 exchange gets its name from Section 1031 of the U.S. Internal Revenue Code, which allows you to avoid paying capital gains taxes when you sell an investment property and reinvest the proceeds from the sale within certain time limits in a property or properties of like kind and equal or greater value. In general, any real estate held for investment or business purposes in the US is considered like-kind, and the difference in type, grade, or quality doesn’t matter.
The Simple Process of a 1031 Exchange
Have you already decided to perform a 1031 exchange?