Understanding the Basics of 1031 Exchange

A 1031 Exchange is an IRS-approved transaction that permits real estate investors to defer tax liabilities associated with the sale of investment properties. This article discusses the fundamentals of the 1031 exchange.
A 1031 Exchange is a transaction sanctioned by the IRS that enables real estate investors to postpone tax obligations from selling investment properties.
Commonly known as "like-kind exchanges," 1031 Exchanges have been available for nearly a century and are utilized by numerous real estate investors annually. The ability to postpone taxes from the sale of investment properties allows investors to strategically reposition their real estate holdings to achieve their goals while maintaining their equity, ensuring it generates returns.