November 4, 2009
IRC 1031 Exchange Allows Deferral of Capital Gains
Nobody likes to pay capital gains. Or at least few people do. And in some cases, you don’t have to. The Internal Revenue Service does have as part of its code what’s called a 1031 Exchange. In an irc 1031 exchange one property can be sold and then the proceeds used toward the purchase of a new property, and in the process avoid, at least for the time-being, a tax trigger.There are numerous rules around these exchanges, and one must work with a Qualified Intermediary in order to take advantage of the code, but they are well worth looking into if you are considering the sale of your property