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1031 Exchange Explained

The internal revenue code or 1031 exchange is an effective tax deferral strategy available to taxpayers. This code allows for a rollover of equity of like rental properties, through a 1031 exchange, to take place without requiring the payment of capital gains taxes on the initial investment. Performing a 1031 exchange allows property investors to use all of the proceeds from the initial sale of rental property. Many property investors use such exchanges as leverage for entering more lucrative rental property deals, which in turn increases their cash flow and diversifies their investment portfolios while at the same time consolidating their investments into one rental property.

If you recently sold an investment rental property or you're considering selling, we can match you with a 1031 advisor able to help you explore your 1031 exchange options.

     

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