CENTRAL OREGON REAL ESTATE PROFESSIONALS
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About 1031 Tax-Deferred Exchange
The
Investor's Tool
Property
investors have a powerful tool for building and preserving their real
estate wealth: 1031
Tax-Deferred Exchange. Section 1031 of the Internal Revenue Code allows
investor to defer payment of income taxes on gains from the sale of
investment property, if the proceeds are reinvested into a "Like-Kind"
property. Read about "Like-Kind" property.
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Exchanging Up
To
accomplish a fully tax-deferred exchange you need to exchange even or up in
value and exchange even or up in equity.
If
you do not exchange even or up in value and exchange even or up inequity,
you have received non-qualifying property ("boot") in your exchange.
If boot is received, tax is computed on the amount of gain on the sale or
the amount of boot received - which ever is lower.
Types of Exchanges
- Simultaneous Exchanges
- Delayed Exchanges
- Improvement Exchange
- Reverse Exchange
- Multi-Property and Multi Party Exchange
Back to the 1031 Tax-Deferred Exchange main page.
Marg &
Rudy Molzan
Rudy-Broker
Marg-Principal Broker
Accredited Buyers Representatives
Email: teammolzan@adhost.com
541-382-4600
888-899-6434
ABR
