• dmendez25

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

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