1031 Tax Code Exchange Explained

1031 Tax Code Exchange Explained

A tax-deferred exchange is a method by which a commercial property investor trades one or more relinquished commercial commercial properties for one or more replacement commercial commercial properties of like-kind, while deferring the payment of federal income taxes and some state taxes on the transaction. In turn, internal revenue code provides that no gain or loss shall be recognized on the exchange of commercial commercial property held for productive use in a trade or business. By deferring any applicable taxes, the commercial property investor has more money available to invest in other commercial commercial property. In effect, you receive an interest free loan from the federal government in the amount you would have paid in taxes.

When combined with a 1031 tax code exchange, tenant in common commercial commercial properties can be even more attractive. 1031 Tax Code Exchanges allow you to defer capital gains taxes by investing in a like commercial commercial property. When using tenant in common commercial commercial properties with a 1031 tax code exchange, you can defer capital gains while diversifying your investments. You can purchase shares of various tenant in common commercial commercial properties in different locales with the proceeds of the 1031 sale.

If you are considering the sale of an investment commercial commercial property, contact a specialist today to discuss your 1031 tax code exchange options.