About 1031

What is a 1031 Exchange?

 

An IRC §1031 exchange allows taxpayers to exchange real property held for productive use in a trade or business or held for investment into similar “like kind” real property. 

 

By deferring gains, the taxpayer can use the deferred taxes as additional capital towards the purchase of replacement real property – equivalent to an interest free loan from the government.

 

Why Consider a 1031 Exchange?

 

• Diversify Real Estate Holdings

• Defer Federal and State Capital Gains Taxes

• Defer Depreciation Recapture Taxes

• Consolidate/Relocate Real Estate Investments

• Reduce management obligations

• Increase Cash Flow

• Estate Succession Planning