Friday, August 29, 2008

Why Do A 1031 Exchange?

1031 Exchanges provide taxpayers with a valuable opportunity to defer taxes that would otherwise be payable upon the sale of real estate or personal property held for productive use in their business or for investment. 1031 Exchange transactions are structured under the 1991 "Safe Harbor" guidelines provided by Internal Revenue Code Section 1031 and Revenue Procedure 2000-37.

A successful 1031 Exchange allows investors to recycle 100% of their capital from the sale of qualifying real estate and personal property into the purchase of "Like-Kind" Replacement Property, instead of paying tax on their capital gain or depreciation recapture at the time they sell their Relinquished Property.

Information provided by TVPX, Inc.

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