What is a 1031 Exchange?
A 1031 Like Kind Exchange is a transaction in which one investment property is sold and one or more replacement properties are purchased on a tax deferred basis. A successful 1031 Exchange results in the taxpayer being able to utilize 100 percent of the sale proceeds from the relinquished property, thereby deferring capital gains and recapture taxes ordinarily associated with appreciated investment real estate. This transaction may be completed on a simultaneous or delayed exchange basis.
To learn more about a 1031 Exchange, please make sure to consult your tax professional and legal advisor. Northland Securities always recommends working with a Qualified Intermediary (Q.I.) to determine if a property qualifies for Safe Harbor provisions of an IRC 1031 Exchange.