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What Is a 1031 Exchange? Know the Rules - Investopedia In essence, a 1031 exchange (also called a like-kind exchange or Starker exchange) allows real estate investors to trade on investment property for another of similar type, avoiding the
What is a 1031 exchange and how does it work? | Fidelity Investments A 1031 exchange is a way for real estate investors to sell a property and reinvest the proceeds in a similar (or “like-kind”) property, deferring capital gains taxes that would otherwise be due upon the sale
What Is a 1031 Exchange and How Does It Work? - Ramsey A 1031 (or like-kind) exchange lets you avoid paying capital gains tax when you sell an investment property if you reinvest the money into a similar investment property (business, rental, etc ) within a certain time
What is a 1031 Exchange? | Wells Fargo What is a 1031 exchange? A 1031 exchange is a tax-deferred transaction If a business owner has property they currently own, they can sell that property, and if they reinvest the proceeds into a replacement property, they can defer any capital gains taxes associated with that sale
What Are 1031 Exchanges and How Do They Work - Raymond James A 1031 exchange, named after Internal Revenue Code Section 1031, is a tax strategy that allows investors to swap investment properties At its core, it lets you defer capital gains taxes by selling one investment property and reinvesting the proceeds into another "like-kind" property
Are 1031 Exchanges Worth It? (w Examples) + FAQs A 1031 exchange lets you sell a rental property or business real estate without paying taxes right away, as long as you buy similar property with that money The catch: you have strict time limits, must follow exact IRS rules, and cannot touch the money yourself Without following these rules perfectly, you lose all tax benefits and owe immediate taxes on your entire gain