The term 1031 Exchange is defined under section 1031 of the IRS Code. Investors can avoid any problems if they replace their commercial property with a commercial real estate investment of equal or greater value. If completed properly a 1031 exchange can allow the investor to “defer” paying capital gains taxes on an investment property when it is sold. This will be successful as long another “like-kind property” is purchased with the profits gained from the sale of the first property.
Feel free to contact us to assist you with this transfer of properties.
For more information on how a 1031 exchange works please visit our other website http://www.1031exchangecre.