If you are a real estate investor who is about to sell a property and use that money to purchase more real estate, make a 1031 Exchange instead of just selling outright. Making every dollar work for you compounds your wealth. Anytime you don’t compound your wealth, you have missed an important opportunity. A 1031 … Read more
Section 1031 of the Internal Revenue Code (IRC) defines the 1031 exchange. 1031 exchange also known as Like kind exchange specifies that if an asset that is most often a land or a building, is sold and the proceeds of the sale are then reinvested in a similar type of asset then there is no … Read more
A tax deferred exchange or 1031 exchange is a strategy or tool that can be used by an investor to sell property, as long as it qualifies, and then buy another like-kind property. Since the transaction is treated as an exchange rather than a sale, investors qualify for a deferred gain. The law can be … Read more
When you sell your interest in investment property, you may incur federal capital gains taxes and, in some states, state taxes as well. Your attorney, tax advisor, or real estate professional may suggest a tax-deferred exchange under Section 1031 of the Internal Revenue Code. A 1031 tax-deferred exchange allows you to dispose of investment properties and … Read more
1031 Exchange and Tax Advantages A 1031 Exchange or Like Kind Exchange is defined by Section 1031 of the InternalRevenue Code. This code specifies that if an asset (usually some form of real estate such asland or a building) is sold and the proceeds of the sale are then reinvested in a like kind of … Read more