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Real Estate Glossary

1031 Exchange

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Richard Wilson
Written by Richard Wilson

1031 exchange is a moniker used for Section 1031 of the U.S. Internal Revenue Code. This segment states that if an individual trades one investment property for another by means of a 1031 exchange, they can defer capital gains taxes. When the replacement property is sold, the original deferred gain and any additional gain obtained since acquiring the replacement property is then subject to tax.

1031 exchange is a moniker used for Section 1031 of the U.S. Internal Revenue Code. This segment states that if an individual trades one investment property for another by means of a 1031 exchange, they can defer capital gains taxes. When the replacement property is sold, the original deferred gain and any additional gain obtained since acquiring the replacement property is then subject to tax.

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Richard Wilson

Richard Wilson

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