Defer You Capital Gains Tax
IRC Section 1031 (a)(1) states: “No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like-kind which is to be held either for productive use in a trade or business or for investment.”Feb 15, 2017
1031 exchanges allow investors to defer capital gain taxes as well as facilitate significant portfolio growth and increased return on investment. Many people may not consider themselves a investor, however anyone who is purchasing a property or properties for productive use or to rent or lease would be considered a investor. In order to access the full potential of these benefits, it is crucial to have a comprehensive knowledge of the exchange process and the Section 1031 code. The term like-kind does not mean– the same exact types of property therefore many dismiss the use of 1031 exchange because
their understanding of this term is not correct. Because of this misinterpretation possibilities have been dismissed or overlooked. Also be advised that this program can be used state to state, and foreign to foreign as well. To find out more about a 1031 exchange and the Qualified Intermediary that I work with please contact me.
Tyrone Dutton Keyes Realtor