1031 Real Estate Exchange Explained
1031 Real Estate Exchange Explained
Internal Revenue Code provides that no gain or loss will be recognized on the exchange of any type of business use or investment
rental real estate for any other business use or investment rental real estate. This means that a
1031 real estate exchange is a rollover of equity of like rental real estate, rather than an avoidance of tax and allows for the transaction to take place with full tax benefits attached. 1031 Real Estate Exchanges are useful in a wide variety of circumstances. They provide excellent opportunities for resourceful real estate owners to create transactions which would not be possible through a sale/purchase format. The overriding advantage of exchanging lies in the ability to move equity from
rental real estate to
rental real estate without having to pay the capital gains taxes. exchangers can create an entire investment program using the wide variety of benefits available, and a
real estate owner can move successively from one
1031 real estate exchange to another any number of times.