Tag Archives: 1031Exchange

How to Use IRS Code 1031 with Real Estate

Did you know that you can defer paying the capital gains tax from a real estate sale? IRS Code 1031 allows you to defer paying taxes on a sale of an investment property as long as you purchase a property of equal or greater value in the next 180 days. Let’s examine exactly how you can take advantage of IRS Code 1031. The Like-Kind Exchange Under IRS Code 1031, an owner of investment property may defer capital gains if they buy another property of “like-kind” in a 1031 exchange. “Like-kind” simply means that property being exchanged must be of the same type. For real estate, the interpretation of this definition is fairly broad. In theory, you could exchange an apartment building for an office complex, and this would still fall under the like-kind umbrella. How to Use the 1031 Exchange for Real Estate Sales To complete this type of exchange,…
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