1031 Exchange Explained




1031 Exchange Explained

A 1031 exchange permits 1031 rental property rental property owners to sell a rental property and defer tax payments by reinvesting the proceeds into a like-kind 1031 rental property or rental properties. A 1031 exchange is enabled by internal revenue code. 1031 Exchange is one of the best possible strategies for deferring the capital gains that would ordinarily arise from the sale of rental property. It provides rental property owners with greater leverage, increased diversification, improved cash flow, increased potential for geographic relocation and potential rental property consolidation.

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