How Do 1031 Exchanges Work?
Learn the Ins and Outs of How 1031 Exchanges Work in Real Estate
Despite all the political hoopla of the past year, we can all agree that taxes are despicable. There’s nothing more depressing than opening a pay stub and seeing Uncle Sam taking a big ole chunk of your hard-earned money. But while taxes may be a certainty, Uncle Sam also created a tax-deferment rule for real estate that allows you to invest without fear of a tax bill coming your way anytime soon. It’s known as Section 1031 of the United States Internal Revenue Code.
Referred to as “1031 exchanges,” this rule allows you to swap one investment property for another without having to pay capital gains taxes right away. While this may seem simple at first glance, there are a few items and rules we should explain before you share this tax-deferment vehicle with your clients. Read More