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1031 Exchange Explained


1031 Exchange Explained

Internal Revenue Code provides that no gain or loss will be recognized on the exchange of any type of business use or investment income real estate for any other business use or investment income real estate. This means that a 1031 exchange is a rollover of equity of like income real estate, rather than an avoidance of tax and allows for the transaction to take place with full tax benefits attached. More importantly, completing a 1031 exchange with a tenants in common interest ownership in an income real estate allows real estate investors not only to defer their capital gains taxes, but also to upgrade their income real estate investment into larger, institutional-grade income real estate.

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




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