On April 25, 1991, the IRS issued deferred exchange regulation-Reg 1.1031(k)-1.
In the words of the IRS "No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held either for productive use in a trade or business or for investment."
This tax code allows taxpayers to defer ALL of the capital gains taxes resulting from their sale of
investment property, when they will, use a Qualified Intermediary & following the I.R.S. guidelines, use the money to buy more suitable investment property within 180 days of the close of their sale.
This means that you can reinvest the money you would otherwise have lost to capital gains tax if you will use the extra money to buy more investment property for the purpose of making more money. This can be done within and between all classes of
real property anywhere in the USA. Our service team is here to help make 1031 exchange as easy and effective for you as possible.
Here is a simplified example of the difference:
