SECTION 1031 EXCHANGES
Section 1031 of the Internal Revenue Code allows taxpayers to exchange property for similar property of equal value, and defer the payment of taxes on the gain from the sale until the replacement property is sold. For example, you can exchange a rental property for another rental property, or a vacant lot for another vacant lot. This can be an important tax planning tool if you do not need or want the cash generated from the sale of a property.
Bouvier and Associates is a qualified exchange intermediary. We can help you structure your qualified exchange from the planning stages to the filing of the tax return.
With proper planning, the Section 1031 exclusion can be combined with the Section 121 (Sale of Personal Residence) exclusion. |