1031 Exchange Explained




1031 Exchange Explained

Internal Revenue Code allows a real estate investor of investment income real estate to exchange income real estate and defer paying federal and state capital gain taxes (20%+ applicable state taxes) in the event that they purchase a like-kind income real estate. A tax-deferred exchange is a method by which a real estate investor trades one or more relinquished income real estate for one or more replacement income real estate of like-kind, while deferring the payment of federal income taxes and some state taxes on the transaction. More importantly, completing a 1031 exchange with a tenants in common interest ownership in an income real estate allows real estate investors not only to defer their capital gains taxes, but also to upgrade their income real estate investment into larger, institutional-grade income real estate.

If you recently sold an investment income real estate or you're considering selling, we can match you with a 1031 company that can help you explore your 1031 exchange options. Contact us today for a free consultation.


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