Dave Foster of ERG will be participating in the "Believe" 2014 District 13 Conference & Expo on June 20th in Punta Gorda Florida. This promises to be a great event with keynote speaker John Tuccillo and a line up of useful seminars on a variety of topics. Be sure to stop
by exhibit 120 to meet.
What is a 1031 Exchange?
When you sell a property you typically have to pay tax on the gain. Gain is created when the property appreciates in value during its ownership or when deductions for depreciation are taken for tax purposes.
A Section 1031 tax deferred exchange, named for the.
While many aspects of a 1031 Exchange are straightforward and clearly delineated, the holding period of a year and a day is a facet that has been debated, scrutinized and litigated. While not an explicit policy, the IRS has been found to favor exchanges for investment properties that are held for longer periods of.
Section 1031 of the IRS Code provides an exception that allows investors to defer paying tax on the gain from a real estate sale if the investor reinvests the proceeds in similar property as part of a qualifying like-kind exchange. The six criteria that must be met for an exchange to qualify under.