IRC Section 1031 Tax Deferred Exchanges

 Since 1921, savvy investors and real estate professionals have been taking advantages of powerful tax strategy created by IRC Section 1031 – the tax deferred exchange. Individuals can accumulate wealth and preserve real estate assets by learning how to defer capital gain taxes when disposing of virtually any property “held for investment.” Thanks to IRC Section 1031, a properly structured exchange allows an investor to sell a property, reinvest the proceeds in a new property and defer all the capital gain taxes.

IRC Section 1031 (a)(1) states:
      “No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like-kind which is to be held for productive use in a trade or business or for investment.”

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