1031 Exchange Guide

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• Types of 1031 Exchanges

• IRS Section 1031
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Welcome to The 1031 Exchange Guide

A 1031 exchange allows you to defer the payment of capital gains taxes associated with real estate transactions. By selling one property and buying a higher-priced property, you can also get additional depreciation deductions, which can act to increase your after-tax income. A 1031 exchange is a type of like-kind exchange in the IRS tax code.

Deferring Taxes with a 1031 Exchange

Only a few simple rules must be followed in order to qualify a real estate transaction as a 1031 exchange. First, only property held for business or investment purposes can be used in a 1031 exchange, and both properties in the transaction must be of "like kind". Like kind property is real estate or other tangible property that is similar in nature or classification.

The IRS Section 1031 tax code lists different types of 1031 property exchanges.

1031 Starker (Deferred) Exchange
1031 Reverse Starker Exchange
1031 Simultaneous Exchange
1031 Personal Property Exchange
1031 Construction Exchange