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| 1031
Tax Deferred Exchange |
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In the summer of 1990, the I.R.S. finally came out with the long awaited rules on Deferred Exchanges. Section 1.1031 of the Internal Revenue Code laid out in detail the procedure for turning a sale and purchase type transaction into an exchange.
These new rules allowed owners of certain types of like kind Real and Personal property to sell their property and buy other like kind property without paying the Capital Gains Tax.
The like kind provision for Real property is quite broad, and includes Land, Rental, and Business property. Any of which, can be exchanged for the other. The like kind provision for Personal property is more restrictive.
This type of property must be in productive use in a business (depreciable property), and can only be exchanged for the same type of property.
If you would like more information about 1031 tax deferred exchange process, simply
fill out the form below and request your free booklet, which explains all the details. |

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