1031 Exchange Simplified Guide
1031 Exchange gets its name from Section 1031 of the U.S. Internal Revenue Code. This section allows you to avoid paying capital gains taxes from the sale of a property when you reinvest the proceeds from the sale with a property of "like-kind", equal, or greater value.
The property involved in the exchange must be held either for productive use in a trade or business or for investment.
A 1031 exchange is perfect for owners who:
Want management relief
Want tax deferrals
Want to expand their portfolio
Want to increase cash flow for reinvestment
Are not in a position to make significant building modifications
Take a look at the infographic below to familiarize yourself with the 1031 Exchange process.
For more information visit: The IRS Website I Final Regulations On Like-Kind Exchanges