1031 Exchange Guide

Defer taxes when buying and selling business or investment real estate with a 1031 exchange

The sale of real estate is a taxable event, creating a tax liability for the seller. However, Section 1031 of the Internal Revenue Code allows for taxes to be deferred through a qualifying exchange of like-kind property. By purchasing a property to replace one that has been sold, the taxpayer can defer certain taxes on the sale.

If you are planning to sell a business or investment property and purchase another, Section 1031 may enable you to defer capital gains and other tax liabilities on the transaction. 1031 exchanges have a lot of specific rules that must be followed, and not every property is eligible.

If you have never performed an exchange before, this can seem daunting, but don’t worry. This guide will outline the basics of Section 1031 like-kind exchanges so you can figure out if an exchange is right for you and get the right help to complete your exchange successfully.