1031 Tax Deferred Exchange
1031 Exchange
A tax-deferred exchange is simply a method by which a property owner trades property for other like-kind property and has the ability to defer any capital gain or loss which would be realized upon a sale. Section 1031 of the Internal Revenue Code allows up to 100 percent deferral of the realized gain.
To qualify for Section 1031 of the Internal Revenue Code, the properties exchanged must be held for productive use in a trade or business or for investment. Stocks, bonds, and other properties are listed as expressly excluded by Section 1031 of the Internal Revenue Code. However, securitized properties are not excluded. The properties exchanged must be of the same nature or character.
Use 1031 Exchange on USLegal for valuable information, forms and services relating to a 1031 exchange, as well as ask questions.
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Introduction
The USLegal 1031 Exchange Domain and blog is managaged by James W. Davis, a licensed attorney and author of Real Property Exchanges, found in the Missouri Bar Real Estate Practice Series, 4th Ed.
