1031 Exchange Explained
1031 Exchange Explained
A tax-deferred exchange is a method by which a
real estate investor trades one or more relinquished
rental real estate for one or more replacement
rental 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
rental real estate held for productive use in a trade or business. More importantly, completing a 1031 exchange with a tenants in common interest ownership in a
rental real estate allows real estate investors not only to defer their capital gains taxes,
but also to upgrade their
rental real estate investment into larger, institutional-grade rental real estate.
If you recently sold an investment
rental real estate or you’re considering selling,
we can match you with a 1031 realtor that can help you explore your 1031 exchange options. Contact us today for a free consultation.