1031 Exchange Explained

1031 Exchange Explained

A tax-deferred exchange is a method by which a real estate investor trades one or more relinquished rental properties for one or more replacement rental 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 rental property held for productive use in a trade or business. 1031 ownership has become the preferred investment vehicle for real real estate investors who wish to defer capital gains via a 1031 exchange and own real rental property without the management headaches.

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