What is 1031 like-kind exchange?
Simply put, it is an exchange of one business or investment asset for a like-kind another. Most exchanges are taxable as sales, however if you meet stringent requirements under IRC code Section 1031, you’ll either have no tax or limited tax due at the time of the exchange.
In the other words if you properly plan BYUING and selling of your property, you may defer your capital gains and let your investment grow tax free.
With a few exceptions, a swap of one personal residence for another is specifically excluded by the Code. However, you will be surprised what exchanges may qualify under a broad definition of a like-kind property used by the IRS.
At Capital Protection Alliance, we have the experience and knowledge to minimize the tax liability for Real Estate buyers and sellers. Book your free phone consultation today with a Trusted Tax Advisor at Capital Protection Alliance at