1031 Exchange Explained

1031 Exchange Explained

A tax-deferred exchange is a method by which a property investor trades one or more relinquished rental properties for one or more replacement rental properties of like-kind, while deferring the payment of federal income taxes and some state taxes on the transaction. In turn, internal revenue code provides that no gain or loss shall be recognized on the exchange of rental property held for productive use in a trade or business. More importantly, completing a 1031 exchange with a tenants in common interest ownership in a rental property allows property investors not only to defer their capital gains taxes, but also to upgrade their rental property investment into larger, institutional-grade rental properties.

If you recently sold an investment rental property or you're considering selling, we can match you with a 1031 advisor that can help you explore your 1031 exchange options. Contact us today for a free consultation.



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