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IRS 1031 Exchange Explained


Irs 1031 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. More importantly, completing an IRS 1031 exchange with a tenants in common interest ownership in an income real estate allows real estate investors not only to defer their capital gains taxes, but also to upgrade their income real estate investment into larger, institutional-grade income real estate.

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




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