1031 Exchange Basics, What is 1031 Exchange
Robert06 Sep, 2019Real Estate
1031 exchange (IRS Code of Section 1031) is an exchange that is used to defer the capital gain taxes. It provides an option to the investor to reinvest the proceeds from the sale of relinquished property to buy a new replacement property and defer the capital gain taxes. An investor has a timeline of 180 days to complete the exchange. As a result, the exchanger or the investor can use 100% of the proceeds to buy another property and defer the taxes. .
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