
Section 1031 of the Internal Revenue Code provides investors with a powerful opportunity. It allows you to exchange your property for new property and defer paying federal income tax as long as the requirements of Section 1031 are met.
A 1031 “like-kind” exchange provides that no gain or loss is recognized on the exchange of property held for productive use in business or as an investment when that property is exchanged for property to be used in business or as an investment.
1031 exchanges are not exchanges in the context of two-party barter. They are typical sale and purchase transactions involving the same components as any other sale or purchase, minus the capital gains.
Our consulting services can help you maximize the benefits of a 1031 exchange, including:
- Immediate tax deferral
- Greater buying and selling power
- Increased income potential
- Time value of deferred gain
- Diversification or consolidation
The rules governing Section 1031 are complex. 1031 Investment Strategies can offer you the practical knowledge, experience, and advice that will enable you to take full advantage of a tax-free exchange. We can consult with you to help complete your tax-deferred exchange in order to facilitate a minimal-risk exchange favored by the IRS.
Contact us today to get started, or learn more about 1031 Investment Strategies and the other services we offer, including replacement properties and real estate exchanges.
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