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1031 Exchange Explained


1031 Exchange Explained

A 1031 exchange is the IRS approved method enabling the deferment of federal (and most state) capital gains taxes through the sale and direct reinvestment of all proceeds into other like kind income property income property. 1031 Exchange is one of the best possible strategies for deferring the capital gains that would ordinarily arise from the sale of income property. It provides property owners with greater leverage, increased diversification, improved cash flow, increased potential for geographic relocation and potential income property consolidation.

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