Found 1 blog entry tagged as 1031 exchange.

What Is a 1031 Exchange and Why Is It Important?

A “1031 exchange” is the nickname used to discuss Section 1031 of the U.S. Internal Revenue Service’s tax code. This section states that if an individual exchanges one investment property for another via a 1031 exchange, they may be able to defer capital gains (or losses) that they would otherwise have to pay at time of sale.

Section 1031 applies to “property” beyond real estate, but many 1031 cases deal with buildings and land. We’ll only discuss 1031s in relation to real estate.

WHY IS A 1031 EXCHANGE IMPORTANT?

So why is a 1031 exchange important? It allows real estate investors to defer paying capital gains and potentially build wealth through real estate investing.

Think about it…

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