I recently attended a seminar on 1031 exchanges, as I frequently work with buyers and sellers who own rental properties in one capacity or another. The Internal Revenue Code Section 1031 allows investors to reinvest proceeds from the sale of one investment property into another similar property while deferring capital gains that would otherwise be due on the sale.
A 1031 exchange is an excellent option to have if you’re looking to move up to a bigger and better property down the line, and want to build your wealth in the process.
However, you need to be aware of the fundamentals before you can reap the benefits. Here are the four simple guidelines for exchanges, as per the Asset Exchange Company in San Francisco:Continue Reading