1031 exchanges were created by the IRS to encourage investment. In a 1031, a taxpayer sells a piece of property and reinvests all of the net proceeds from the sale of that property into another piece of like-kind property. That allows them to defer all the taxes on the sale of that initial property, and continue to build their wealth instead of writing a big check to the IRS on tax day.
Bemidji 1031 Exchange Professionals
Take a look at the below whiteboard video to learn the basics of a 1031 exchange:
Many taxpayers – from commercial real estate investors, to small time art collectors – are using 1031 exchanges to defer their capital gains taxes and reinvest their money into bigger and better property. Completing a successful 1031 exchange requires the knowledge and experience of a qualified intermediary – 877.373.1031.