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What is a 1031 Exchange?
What is a 1031 Exchange?
Internal Revenue Code Section 1031 permits the deferral
of
capital gains and
other taxes on the sale of property. In the most common type of exchange,
a
Forward Delayed Exchange, property
is sold and the proceeds are used to purchase replacement property within
certain timeframes. To qualify for a safe harbor tax deferral, proceeds
should be held with a
Qualified Intermediary between
the sale and purchase.
Understanding 1031
Learn the key rules for successful 1031 real estate exchanges.