What is a 1031 Real Estate Exchange?

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mkarol | 2 years, 9 months ago

Under United States tax law, the sale or exchange of a business asset ordinarily triggers the recognition of gain or loss associated with the transaction. Section 1031 of the Internal Revenue Code (26 U.S.C. § 1031) provides that certain transaction will not result in the recognition of gain when the taxpayer exchanges the asset for a like-kind replacement asset. While §1031 is increasingly used by sophisticated taxpayers as part of advanced tax planning strategies, the basic rules of the section allow most taxpayers to benefit from the tax deferral provided by §1031.

http://knol.google.com/k/martin-karol/like-kind-exchanges-under-irc-section/g641rvg01p99/2

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robbrown | 3 years, 4 months ago

"A 1031 exchange makes it possible for investors to sell and buy property of like kind while deferring tax consequences."

http://www.rentlaw.com/1031.htm

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