1031 Exchange Explained

1031 Exchange Explained

A 1031 exchange permits 1031 starker real estate real estate investors to sell a commercial real estate and defer tax payments by reinvesting the proceeds into a like-kind 1031 starker real estate or commercial real estate. A 1031 exchange is enabled by internal revenue code. By deferring any applicable taxes, the real estate investor has more money available to invest in other commercial real estate. 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 exchange, TIC commercial real estate can be even more attractive. 1031 Exchanges allow you to defer capital gains taxes by investing in a like commercial real estate. When using TIC commercial real estate with a 1031 exchange, you can defer capital gains while diversifying your investments. You can purchase shares of various TIC commercial real estate in different locales with the proceeds of the 1031 sale.

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