Education & Insights

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Managing real estate capital gains with like-kind exchanges (Section 1031)

In many cases, if you are planning to sell real estate and purchase new real estate, the tax gain can be deferred by following certain procedures in the Internal Revenue Code (IRC). An investor can exchange one real estate investment for another (or several) and can postpone paying taxes on the unrealized gain in the relinquished property if the proceeds are reinvested in ’like-kind’ property. This type of like-kind exchange, or 1031 exchange named after the IRC Section allows real estate investors to reinvest the proceeds from a sale on a pre-tax basis. Read More