The Section 1031 exchange is widely considered to be the Internal Revenue Code's last great wealth building tool. For investment or income property owners it remains an unsurpassed vehicle which drives equity growth, uniquely defers capital gain and depreciation recapture taxes, and dramatically increases buying power.
The IRS allows you to exchange your equity in an appreciated investment property because they view it as you simply moving your cost basis for tax purposes from one qualifying property to another. That said, there are rules which must be followed to totally defer your capital gain tax exposure while you replace both your equity and debt in a new replacement property. So, peruse our resources and if you need to speak with a 1031 expert, set up a call or Zoom video conference without obligation!
SPEAK WITH AN EXCHANGING EXPERT
For a successful exchange it is critical that your transaction meets the rules. It usually only takes a few minutes via phone or Zoom video conference to get your questions answered and ensure your 1031 will be flawless.