AVOID TRIGGERING TAXES WHEN EXCHANGING YOUR RENTAL PROPERTY The paramount principle of a 1031 exchange is to defer capital gains tax when you replace your business/investment real estate with other business/investment real estate. This is known as a “like kind” exchange, and today all real estate (including mineral rights and fractional interests) is “like kind” with all other real estate. Click here for a summary of 1031 exchange requirements. However, not all real estate satisfies the “business or investment” requirement of a 1031 exchange.
EDITOR’S NOTE: This article was originally published on the 1031 Capital Solutions website and is republished here with permission.
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