1031 Exchange Explained


1031 Exchange Explained

IRC Section 1031 relates to the disposition of property that is held for investment purposes or used in productive business. If performed properly, IRC section 1031 provides an exception to the rule requiring the payment of capital gains tax upon the sale or exchange of property. Performing a 1031 exchange allows owners to use all of the proceeds from the initial sale of property. Many owners use such exchanges as leverage for entering more lucrative property deals, which in turn increases their cash flow and diversifies their investment portfolios while at the same time consolidating their investments into one property.

If you recently sold an investment property or you're considering selling, we can match you with a TIC advisor able to help you explore your 1031 exchange options.

Popular tags