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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 ownership has become the preferred investment vehicle for real property owners who wish to defer capital gains via a 1031 exchange and own real investment property without the management headaches.

If you are interested in learning more about tenants 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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