Thanks to IRC Section 1031, a properly structured 1031 exchange allows an investor to sell a property, to reinvest the proceeds in a new property and to defer all capital gain taxes. IRC Section 1031 (a)(1) states:
“No gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment, if such real property is exchanged solely for real property of like-kind which is to be held either for productive use in a trade or business or for investment.”
Tax-deferred exchanges allow investors to defer capital gain taxes as well as facilitate significant portfolio growth and increased return on investment. In order to access the full potential of these benefits, it is crucial to have a comprehensive knowledge of the exchange process and the Section 1031 code. An accurate understanding can reveal possibilities you might have previously overlooked.
Property Connection is your resource for accurate and thorough information about the entire 1031 exchange process.
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Property Connection is in the business of buying, selling, renting, managing, and growing the real estate assets of Southern Californians. We connect the dots of real estate investing and property management.