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Exchange Explained


Exchange Explained

A tax-deferred exchange is a method by which a property investor trades one or more relinquished commercial properties for one or more replacement commercial properties of like-kind, while deferring the payment of federal income taxes and some state taxes on the transaction. In turn, internal revenue code provides that no gain or loss shall be recognized on the exchange of commercial property held for productive use in a trade or business. The theory behind internal revenue code is to allow the property investor to reinvest the sale proceeds into another commercial property, foregoing any economic gains that may have been realized from the sale. If you have recently sold, or are thinking of selling investment commercial property, we can assist in matching you with a qualified 1031 broker. A 1031 broker can help you explore your exchange options. Contact us today for a free consultation.




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