A 1031 exchange, otherwise known as a tax deferred exchange is a simple strategy and method for selling one property, that's qualified, and then proceeding with an acquisition of another property (also qualified) within a specific time frame. The logistics and process of selling a property and then buying another property are practically identical to any standardized sale and buying situation, a "1031 exchange" is unique because the entire transaction is treated as an exchange and not just as a simple sale. It is this difference between "exchanging" and not simply buying and selling which, in the end, allows the taxpayer(s) to qualify for a deferred gain treatment. So to say it in simple terms, real estate sales are taxable with the IRS and 1031 exchanges are not.

There are rules and timelines that must be adhered to in order for a 1031 Exchange to completely defer capital gains taxes. For more information on a 1031 exchange, fill out the form below and I will email 4 attachments explaining all the aspects and rules of a 1031 Exchange.