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1031 Exchange Explained


1031 Exchange Explained

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. In turn, internal revenue code provides that no gain or loss shall be recognized on the exchange of investment property held for productive use in a trade or business. More importantly, completing a 1031 exchange with a tenants in common interest ownership in an investment property allows property owners not only to defer their capital gains taxes, but also to upgrade their investment property investment into larger, institutional-grade investment properties.

If you recently sold an investment investment property or you're considering selling, we can match you with a 1031 advisor that can help you explore your 1031 exchange options. Contact us today for a free consultation.

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