1031 Exchange: An Advanced Real Estate Strategy
The vast majority of commercial real estate buyers don't make use of the wealth-building advantages of the tax-deferred 1031-Exchange. Once a property sale goal is realized, many owners sell the property, pay taxes, and then purchase other real estate, without using a 1031-Exchange. 1031 exchange san diego are useful in a wide variety of circumstances. They provide excellent opportunities for resourceful buyers to create transactions which would not be possible through a sale-purchase format. "Like-Kind" Property Exchanges The Internal Revenue Code Section 1031 (a) (1) says, "no gain or loss is recognized if property held for productive use in a trade or business or for investment is exchanged solely for property of a like kind to be held either for productive use in a trade or business or for investment." What does the code really mean? Property that is held for investment can be exchanged for any other property that is being held for investment and the owne...