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Section 1031(a) of the Internal Revenue Code (26 U.S.C. § 1031) states the recognition rules for realized gains (or losses) that arise as a result of an exchange of like-kind property held for productive use in trade or business or for investment. It states that none of the realized gain or loss will be recognized at the time of the exchange.
A 1031 exchange is a real estate transaction where you trade a business-use property or one held as an investment property for a "like kind" property. 1031 Exchange Rules: Deadlines, Benefits and ...
A 1031 exchange allows certain real estate investors to defer capital gains taxes when selling one investment property and reinvesting proceeds from the sale into another similar property. Taxes ...
A like-kind exchange under United States tax law, also known as a 1031 exchange, is a transaction or series of transactions that allows for the disposal of an asset and the acquisition of another replacement asset without generating a current tax liability from the sale of the first asset. A like-kind exchange can involve the exchange of one ...
Selling real estate for more than you paid for it is a good thing, but the capital gain has tax consequences. If you used the property for business or held it as an investment, you can defer the ...
The QI sends required exchange documents to the escrow closer for signing at property closing. Escrow closes. Within the first 45 days after the close of escrow on the sale of the relinquished property, the investor identifies replacement properties as required by law. This is known as the "Identification Period".
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