What is a 1031 Exchange? This is a question we hear a lot from our clients that have recently purchased a rental property (or hope to do so in the future). If you’ve ever considered investing in a rental property, the 1031 Exchange should definitely be part of your plan. Here are 5 things to know about a 1031 Exchange:
- What is a 1031 Exchange? To put it simply, a 1031 Exchange is a section of the tax code that incentivizes the swap of one business or investment asset for another (most often real estate). For our clients, this most often comes in the form of swapping one rental property for another.
- Why use a 1031 Exchange? To defer taxes, of course! In other words, the IRS lets you change the form of your investment without (or with limited)