1031 Tax Exchange Explained


1031 Tax Exchange Explained

The IRS section 1031 or 1031 tax exchange is an effective tax deferral strategy available to taxpayers. This code allows for a rollover of equity of like investment properties, through a 1031 tax exchange, to take place without requiring the payment of capital gains taxes on the initial investment. Performing a 1031 tax exchange allows investors to use all of the proceeds from the initial sale of investment property. Many investors use such exchanges as leverage for entering more lucrative investment property deals, which in turn increases their cash flow and diversifies their investment portfolios while at the same time consolidating their investments into one investment property.

If you recently sold an investment investment property or you're considering selling, we can match you with a 1031 tax exchange company able to help you explore your 1031 tax exchange options.

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