1031 Real Estate Exchange Explained
1031 Real Estate Exchange Explained
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. In turn, internal revenue code provides that no gain or loss shall be recognized on the exchange of
income real estate held for productive use in a trade or business. The theory behind internal revenue code is to allow the
real estate investor to reinvest the sale proceeds into another income real estate, foregoing any
economic gains that may have been realized from the sale. If you have recently sold, or are thinking of selling investment income real estate, we can assist in matching
you with a qualified 1031 real estate broker. A 1031 real estate broker can help you explore your
1031 real estate exchange options. Contact us today for a free consultation.