1031 Exchange Explained
1031 Exchange Explained
Internal Revenue Code allows a
property investor of investment
income property to exchange
income property and defer paying federal and state capital gain taxes (20%+ applicable state taxes) in the event that they purchase a like-kind income property. A tax-deferred exchange is a method by which a
property investor trades one or more relinquished
income properties for one or more replacement
income properties of like-kind, while deferring the payment of federal income taxes and some state taxes on the transaction. More importantly, completing a 1031 exchange with a
tenants in common interest ownership in an
income property allows property investors not only to defer their capital gains taxes,
but also to upgrade their
income property investment into larger, institutional-grade income properties.
If you recently sold an investment
income property or you’re considering selling,
we can match you with a 1031 expert that can help you explore your 1031 exchange options. Contact us today for a free consultation.