1031 Exchange Explained
1031 Exchange Explained
IRC Section 1031 relates to the disposition of
investment property that is held for investment purposes or used in productive business. If performed properly, IRC section 1031 provides an exception to the rule requiring the payment of capital gains tax upon the sale or exchange of investment property. 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 to also upgrade their investment
investment property into larger, institutional-grade investment properties. Essentially,
1031 exchanges allow property owners to use all of the proceeds from their sale as leverage to gain access to more valuable
investment property investment property.
If you are thinking of transferring any investment property, contact us today for more information on 1031 exchanges.