1031 Exchange Simplified Guide
Updated: Mar 10
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