Reasons to consider the 1031 Like-Kind Exchange process.

Section 1031 of the Internal Revenue Code permits owners of business or investment property to sell property and purchase a similar “like-kind” property while deferring capital gains. 

Main Reason For Consideration:

• Tax deferral available through a properly conducted exchange.  It must be noted that a 1031 Like-Kind Exchange is not tax free, however, it only defers 1.) the capital gain and 2.) the tax on depreciation recapture. The Internal Revenue Service views this as a continuation of the original investment.  Taxes on the capital gain and depreciation recapture are not incurred until an exchanged property is sold and cash proceeds are received.

Additional Benefits Related to Performing a 1031 Like-Kind Exchange:

• Improve cash flow by deferring payments of taxes
• Leverage equity into purchase of replacement property
• Consolidate and diversify business or investment property holdings

The information contained at this site is solely provided for informational purposes and does not create a business or professional relationship. This website is intended to provide basic information about I.R.C. 1031 Section 1031 tax-deferred exchanges and does not contain tax or legal advice.