1031 Exchange - All You Need To Know
What is 1031 Exchange? IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free. Source: Irs.gov Benefits of 1031 Exchange 1. Cash deferral 2. Improved return on cash flow 3. Consolidation or diversification of investment 4. Elimination of active management of the investment 5. Wealth development
What is 1031 Exchange?
IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free.
Source: Irs.gov
Benefits of 1031 Exchange
1. Cash deferral
2. Improved return on cash flow
3. Consolidation or diversification of investment
4. Elimination of active management of the investment
5. Wealth development
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• 2. Improved return on cash flow
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