WHY IS A 1031 TAX-DEFERRED EXCHANGE SO POPULAR?
Instead of selling a property, paying taxes on it, and then using the reduced after-tax proceeds to buy other real estate, IRC Code 1031 allows deferment of capital gains tax which would have been owed on the sale of that property. Basic Requirements for a Successful Exchange:
In effect, you can receive an interest-free loan from the government, in the amount you would have paid in taxes. It's important to plan ahead and if you have the motivation and the intention to do an exchange, we are here to help! |