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The 1031 Exchange Process
What is a 1031 Exchange
Section 1031 of the IRS tx code allows a taxpayer to "exchange" one or more investment properties and purchase one or more "like kind" properties and defer the capital gains taxes on the proceeds from the sale. This process is governed by Section 1031 of the IRA Tax Code. The seller of the property, also know as the exchanger, must follow certain rules for the transaction to qualify as a tax-free 1031 exchange
What are the Benefits
A 1031 exchange allows a taxpayer to defer the capital gains tax on the sale of investment property when that property is exchanged like-kind investment properties. Depending on the state of residence, this can be a 20 to 30 percent
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