1031 Exchanges - Defer taxes on investment property

Normally, a seller of investment real estate would have to pay capital gains tax on the profit. This tax would decrease the amount of money that they would have for future investment.

If the requirements are met, Section 1031 of the Internal Revenue Code allows the seller to defer this tax and re-invest the full pre-tax profit. The exchange is usually available to sellers of investment property who purchase "like kind" replacement property within a specific period of time after the sale.

As the saying goes, "it takes money to make money," and the 1031 Exchange can be a powerful wealth-building tool. Call for more information!

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For advice on legal matters please contact your attorney. This information was prepared in collaboration with Kahn & Kahn Attorneys at Law.