A 1031 like-kind exchange allows business owners and investors to defer taxes on the sale of their real estate investments. Learn the seven fundamental principles of a 1031 exchange in this short video.
An IRC Section 1031 exchange, commonly known as like-kind exchange, can be a smart tax strategy for business owners who also own or invest in real estate. Understanding seven fundamentals will help you determine if this strategy will fit into your overall tax and real estate plans.
In our short video, Laurice Szydlowski, a CPA with Plante Moran, and Cam McCausland, a partner with Plante Moran Real Estate Investment Advisors (REIA), discuss how you can defer the tax liability on the sale of a real estate asset used in a business or held for investment by replacing it through the purchase of a new property.
A 1031 exchange strategy gives you the opportunity to grow your commercial real estate portfolios by reinvesting the full proceeds of a real estate sale right away. You can also use this opportunity to change real estate asset classes and geographies within the United States.
Because there are many rules and regulations to which you must adhere, the help of a professional real estate investment consultant is crucial. If you’d like assistance planning and executing a 1031 exchange for real estate, contact our team today.
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