Generally, when you sell real estate, you have to pay tax on the gain from the sale of your property. This gain is caused either by the property appreciating over time or by taking depreciation deductions for tax purposes.
A Section 1031 Exchange, named for the Internal Revenue Code Section, offers you the major exception to imposition of this capital gains tax. With a 1031 Exchange, when you sell business or investment real estate and replace it with other business or investment real estate, you can defer the payment of the tax that is normally due on the sale.
If your objective is to use the proceeds from the sale of your property to buy more business or investment real estate, a 1031 Exchange can provide you with more funds for investment than can be achieved through the investment of after-tax proceeds from the sale of your current property.
A 1031 Exchange is not a tax loophole. It is a code section written by Congress specifically to allow anyone who meets its requirements to sell their property and defer paying tax on the gain.
Please visit Investment Exchange Group -- IXG1031.com -- for 1031 Exchange information. This web site is no longer active.
Visit http://ixg1031.com
[ Who to Use? ] [ Why Use Us? ] [ Fee Schedule ]
[ Updates and Articles ] [ Ask a Question/Contact Us ] [ More Information ]
This internet page is brought to you by a group of CPA's and attorneys
dedicated to making sure your 1031 Exchange is handled properly:
Professional Exchange Accommodators, LLC © 1999,2000,2002
1-800-895-3520 or e-mail at drew.mccabe@ixg1031.com
A member of the Federation of Exchange Accommodators