In general, a gain or loss realized on the sale or disposition of property must be recognized for tax purposes per IRC §1001. Thanks to IRC §1031, a properly structured exchange allows an investor to sell a property, to reinvest the proceeds in a new property and to defer capital gain taxes. Exchanges protect investors from capital gain taxes as well as facilitating significant portfolio growth and an increased return on investment.
- What property tax is exchangeable
- Do’s and don’ts of deferred exchanges
- The “how to” rules of deferred exchanges
- Related parties and deferred exchanges
- Tax consequences of deferred exchanges