1031 Exchange

The 1031 exchange has become a hot topic for professionals in the real estate market including agents, title companies, and investors owning rental properties. It refers to section 1031 of the United States Internal Revenue Code (26 U.S.C § 1031) which allows investors to swap one investment property for another to defer payment of capital gains tax from the sale of investment property. In turn, this allows them to make the most out of their real estate investments. While it seems straightforward, there are a lot of special requirements, tax implications, and timeframes that may apply to the 1031 exchange and make it more complicated. Therefore, real estate investors who intend to use 1031 exchange for their own advantage must be well aware of the more in-depth details and specifics of its law before they start taking advantage of it. If you don’t know what exactly a 1031 exchange is or how it is used in real estate investing, you can find out all you need to know here!