Internal Revenue Code 1031 tax deferred exchanges can be challenging to understand, leaving the taxpayer with more questions than answers. What follows is a suggested series of steps from a qualified intermediary of fifteen years, including the basic rules of a forward 1031 exchange. Continue reading
The benefits of completing an Internal Revenue Service 1031 tax exchange provide compelling reasons for any taxpayer selling property held for investment or trade or business to consider a 1031 exchange. To defer 100 percent of the federal, state and local capital gains and recaptured depreciation taxes requires the taxpayer to reinvest 100 percent of the net sales proceeds and retired debt from the sale of the old property held for the proper intent for a new like kind property.