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Exchange Explained

The internal revenue code or exchange is an effective tax deferral strategy available to taxpayers. This code allows for a rollover of equity of like commercial properties, through an exchange, to take place without requiring the payment of capital gains taxes on the initial investment. 1031 Exchanges are useful in a wide variety of circumstances. They provide excellent opportunities for resourceful property investors to create transactions which would not be possible through a sale/purchase format. The overriding advantage of exchanging lies in the ability to move equity from commercial property to commercial property without having to pay the capital gains taxes. exchangers can create an entire investment program using the wide variety of benefits available, and a property investor can move successively from one exchange to another any number of times.