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Exchange Explained


Exchange Explained

A tax-deferred exchange is a method by which a property investor trades one or more relinquished commercial properties for one or more replacement commercial properties of like-kind, while deferring the payment of federal income taxes and some state taxes on the transaction. In turn, internal revenue code provides that no gain or loss shall be recognized on the exchange of commercial property held for productive use in a trade or business. Performing an exchange allows property investors to use all of the proceeds from the initial sale of commercial property. Many property investors use such exchanges as leverage for entering more lucrative commercial property deals, which in turn increases their cash flow and diversifies their investment portfolios while at the same time consolidating their investments into one commercial property.

If you recently sold an investment commercial property or you're considering selling, we can match you with a 1031 broker able to help you explore your exchange options.




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