1031 Exchange Explained




1031 Exchange Explained

Internal Revenue Code allows a real estate investor of investment income real estate to exchange income real estate and defer paying federal and state capital gain taxes (20%+ applicable state taxes) in the event that they purchase a like-kind income real estate. 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. 1031 ownership has become the preferred investment vehicle for real real estate investors who wish to defer capital gains via a 1031 exchange and own real income real estate without the management headaches.

If you are interested in learning more about tenant in common investment exchanges, a type of preferred type of 1031 exchange, contact us and we will gladly refer you to a licensed representative.


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