Home | 1.800.TIC.1031
TENANTINCOMMONINVESTMENT.COM

1031 Exchange Explained


1031 Exchange Explained

A tax-deferred exchange is a method by which a property owner trades one or more relinquished investment properties for one or more replacement investment properties of like-kind, while deferring the payment of federal income taxes and some state taxes on the transaction. In turn, IRC section 1031 provides that no gain or loss shall be recognized on the exchange of investment property held for productive use in a trade or business. The theory behind IRC section 1031 is to allow the property owner to reinvest the sale proceeds into another investment property, foregoing any economic gains that may have been realized from the sale. If you have recently sold, or are thinking of selling investment investment property, we can assist in matching you with a qualified TIC advisor. A TIC advisor can help you explore your 1031 exchange options. Contact us today for a free consultation.

Filed under: Popular tags