IRS Code Section 1031 allows an individual to sell an investment property and reinvest the proceeds from the sale into a new like-kind property without paying capital gains taxes, as long as the new property meets the requirements outlined by the IRS. There are a few reasons why an investor may be considering a 1031 exchange, but the most significant is the capital gains tax deferral.

There are many regulations that must be observed in a 1031 exchange transaction. Due to the complexity of these transactions, it's highly recommended to use a professional. If you have questions about the 1031 exchange process, give us a call.