Thinking about selling your rental with a 1031 Exchange? Unlock the full potential of selling with a 1031 Exchange. Download our FREE guide to discover the multitude of benefits beyond tax deferral. Explore proven strategies to diversify your portfolio, enhance cash flow potential, and build long-term wealth with a 1031 Exchange.
Internal Revenue Code section 1031, which establishes the transaction structure referred to as a 1031 Exchange, is one of the most advantageous sections of the US tax code. A 1031 Exchange allows for the deferral of taxes when investment property is sold in conjunction with the purchase of another replacement property. The tax savings alone is reason enough to justify a 1031 Exchange — but there are secondary benefits that can often be even more valuable.
As a wealth-building tool, a 1031 Exchange gives investors access to a property’s appreciation to increase buying power without a tax penalty. Armed with more buying power, investors can purchase quality assets, expand their portfolio, diversify into new property types, and even adopt a new ownership strategy.