A 1031 exchange gets its name from Section 1031 of the U.S. Internal Revenue Code, which allows you to avoid paying capital gains taxes when you sell an investment property and reinvest the proceeds from the sale within certain time limits in a property or properties of like kind and equal or greater value.
It is estimated that as many as two-thirds of investment properties use this provision.
We recommend you speak with your realtor and/or tax professional to discuss 1031 exchanges whenever you intend to sell an investment property and are intending to purchase additional properties. Email us at info@soundnvest.com or call 510.377.8853 to learn more.