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1031 Tax Deferred Exchange

Thanks to I.R.C. Section 1031, a properly structured 1031 exchange allows an investor to sell a property, reinvest the proceeds in a new property, and defer all capital gain taxes. IRC Section 1031 (a)(1) states:

“No gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or investment if such real property is exchanged solely for real property of like-kind which is to be held either for productive use in a trade or business or investment.”

Exchange of like-kind property under I.R.S. Code 1031, in which parties may defer any capital gains tax due.

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