What is an Exchange 1031?
A 1031 Exchange is a swap of one business or investment asset for another. It allows your investment to continue to grow tax deferred. You can roll over the gain from one piece of investment real estate to another, and another, and so on and so forth.
As the taxpayer, you are the individual who owns the investment property and who would like to exchange that property for another like-kind investment property.
What property is eligible?
For property to be eligible as either Relinquished Property (The property owned by the taxpayer which will be given up in exchange for new property) or Replacement Property (The property to be received by the taxpayer to replace the Relinquished Property) in a 1031, it must be held by the taxpayer for productive use in a trade or business, or for investment purposes. Examples include: Rental property, raw land held for appreciation, leasehold interests of 30 years or more, farms, etc.
How do I get started with an exchange?
Contact an agent on Team Wilmington for more information. Then, contact Investors Title Exchange to initiate the process.
For more detailed information on an Exchange 1031, Click Here.