Learn more about the tax saving benefits of a 1031 exchange and if the benefits outweigh possible disadvantages.
As the saying goes, nothing in life is certain except death and taxes. But, while we can’t defer death, we can certainly defer taxes…with a 1031 exchange that is! The main purpose of a 1031 exchange is as a vehicle to avoid incurring capital gains taxes, but it can also be used as a tool for strategic business planning.
What is a 1031 Exchange?
A 1031 exchange is so called because it is outlined in Section 1031 of the U.S. Internal Revenue Code. This code states that the seller of commercial property can avoid paying capital gains taxes when they sell the investment property…