1031 exchange

Performance Property Real Estate Question

3 Keys To Successful 1031 Exchange

Q: Gerald, I’m selling a building we’ve owned for many years and are thinking about doing a 1031 exchange to avoid taxes. Any advice you can give? Jason, Clearwater, FL. A: Jason, 1031 exchanges allow you to defer capital gains not avoid taxes. Here are 3 keys to a successful 1031 exchange: 1. Your sale and subsequent purchase of ‘like kind’ property must be “qualified transactions” for you to be able to defer capital gains through a 1031 exchange, which means the property you sell must’ve been held for investment intent, so rehabs or fix and flips typically don’t qualify. 2. The property you sell and the one you buy in a 1031 exchange must be held by the same […]

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