Mortgage Research Center - 1031 Exchanges

This site is designed to help educate you about a variety of financial information including ways to save money on your mortgages but it also has a plethora of other financial advice. For example one huge tax benefit the IRS has created is a 1031 exchange. These exchanges are applicable to investment properties of "like-kind".

Essentially a 1031 Exchange allows you to buy and sell a piece of property and then use the proceeds of this transaction to purchase another property without paying taxes on the profit. You will be responsible for taxes when you sell the next property (assuming you do not do a 1031 Exchange on it). However, most of the time the taxes are incurred at a Capital Gains tax rate as long as the property was held for a certain period of time.

IRS 1031 Page - Get official information from the IRS page. It includes additional information on how to take advantage of the 1031 Exchange. It refers to the Internal Revenue Code Section 1031 (which is where a 1031 gets is name). It says that if one is executed on like kind properties, the IRS recognizes no loss or gain

If you own investment property and would like to learn how you can take advantage of these tax benefits (whether you own land, rental, or business property), you can contact one of the representatives at our office or you can visit the official IRS page as listed above. You can get more information on what you need to do if you are an "Exchanger" to ensure you abide by the tax code (including whether you need to use a "Qualified Intermediary").