Posted by ankorrealty on November - 15 - 2016


While doing some research I came across an interesting article about 1031 Exchange. I hope you find it as useful as I did. 

In short…

“A like-kind exchange is permitted under Section 1031 of the U.S. Internal Revenue Code and allows an investor who holds property “for productive use in trade or business or for investment” to sell that property and purchase another like-kind property or properties that qualify within the IRS rules without paying capital gains taxes on any appreciation realized in the sale of the first property.

Although the properties exchanged are called “like-kind” it does not mean that the properties “exchanged” have to be a shopping center for a shopping center or an apartment building for another apartment building. Rather it means the properties have to be like-kind in the sense that the exchange property has to also be held “for productive use in trade or business or for investment.” According to Waiwood, this could mean exchanging a hotel for an office building, a commercial property for unimproved property, or an industrial building for a multi-family property.”

There’s more. Click here for the full article in PDF format!