What are the 1031 rules?
Taking advantage of a 1031 exchange provides significant tax benefits to investors, but it only works when done properly. There a few factors to pay attention to when you decide to take this investment route. Some questions you may have are: How long do I have to Identify a property? What is a like-kind property? Do I need a 1031 Exchange Intermediary? So let’s get started, what are the 1031 exchange rules? Let’s take a quick look at 1031 exchanges.
A “1031” is a mechanism that allows an investor to defer taxes and build wealth over time by deferring the taxes that would normally be due at the time of a traditional sale. In a 1031, the deferred taxes are invested into a new investment of equal or greater value. There are strict IRS guidelines that must be followed to conduct a 1031 exchange and reap the benefits.