What is a 1031 Tax Exchange?

A tax deferred exchange is an approved method to sell investment properties and acquire one or more “like-kind” properties without paying any federal capital gain taxes.

When the exchange meets the criteria of the Internal Revenue Code Section 1031 and the regulations promulgated by the IRS, taxes are deferred until sometime in the future.

The timing for a 1031 exchange is critical: the replacement property must be identified and acquired within a statutory time period commencing with the close of escrow of the relinquished property.

To learn more about the 1031 Tax Exchange and how we can apply the 1031 to your investment property contact the Mahony Branch office nearest you.