IRS 1031 Exchange Explained

Irs 1031 Exchange Explained

Internal Revenue Code provides that no gain or loss will be recognized on the exchange of any type of business use or investment commercial property for any other business use or investment commercial property. This means that an IRS 1031 exchange is a rollover of equity of like commercial properties, rather than an avoidance of tax and allows for the transaction to take place with full tax benefits attached. Irs 1031 Exchanges are useful in a wide variety of circumstances. They provide excellent opportunities for resourceful property investors to create transactions which would not be possible through a sale/purchase format. The overriding advantage of exchanging lies in the ability to move equity from commercial property to commercial property without having to pay the capital gains taxes. exchangers can create an entire investment program using the wide variety of benefits available, and a property investor can move successively from one IRS 1031 exchange to another any number of times.