Question: What is a 1031 Exchange?
Answer: Section 1031 of the Internal Revenue Service Code allows a seller of real estate to defer capital gains taxes on the sale of real property if:the property is held for an investment and is not a principle residence;
the property is exchanged for like-kind property; and
certain time frames for replacement are met.
By using all of the profit from the sale of one property to invest in another, an investor can continue to defer capital gains on successive transactions while building their equity and rental income stream. Learn more about the 1031 Exchange
