A tax-deferred exchange (IRC 1031) offers investors an opportunity to build wealth and save taxes. By completing an exchange, the investor/exchanger can dispose of their investment property, use all of the equity to acquire replacement investment property, defer the capital gains tax that would ordinarily be paid and leverage all of their equity into a replacement property.
Successful 1031 Exchanges require the exchanger to follow strict guidelines including a 45-day identification period and a 180-day closing. It is advisable to consult with a trusted advisor prior to entering into a 1031 Exchange. To learn more about 1031 Exchanges click here.
