The Prime Mart24 Oct, 2023Real Estate
A tax-deferred transaction that is permitted by Section 1031 of the United States Internal Revenue Code is referred to as a 1031 exchange, which is also known as a like-kind exchange. If investors reinvest the profits from the sale of certain types of investment or commercial assets into another “like-kind” property, they are able to postpone the payment of capital gains taxes that would otherwise be due on the sale of such properties. The fundamental goal of a 1031 exchange is to provide investors with the chance to delay taxes and maintain a greater amount of money invested in productive assets. This is done with the intention of encouraging investment and fostering economic growth.
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