1031 Exchange Explained

1031 Exchange Explained

A 1031 exchange permits 1031 property property owners to sell a commercial property and defer tax payments by reinvesting the proceeds into a like-kind 1031 property or commercial properties. A 1031 exchange is enabled by internal revenue code. 1031 Exchanges are useful in a wide variety of circumstances. They provide excellent opportunities for resourceful property owners to create transactions which would not be possible through a sale/purchase format. The overriding advantage of exchanging lies in the ability to move equity from commercial property to commercial property without having to pay the capital gains taxes. exchangers can create an entire investment program using the wide variety of benefits available, and a property owner can move successively from one 1031 exchange to another any number of times.