IRS 1031 Exchange Explained

Irs 1031 Exchange Explained

A tax-deferred exchange is a method by which a property investor trades one or more relinquished income properties for one or more replacement income properties of like-kind, while deferring the payment of federal income taxes and some state taxes on the transaction. In turn, internal revenue code provides that no gain or loss shall be recognized on the exchange of income property held for productive use in a trade or business. 1031 ownership has become the preferred investment vehicle for real property investors who wish to defer capital gains via an IRS 1031 exchange and own real income property without the management headaches.

If you are interested in learning more about tenants in common investment exchanges, a type of preferred type of IRS 1031 exchange, contact us and we will gladly refer you to a licensed representative.



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