1031 EXCHANGE:

The purpose of the Exchange is to defer the payments of taxes on some or all of the capital gains property that is exchanged.  The Internal Revenue Service, through Section 1031 of the Internal Revenue Code, recognizes that an exchange of like-kind property is not a taxable event.  Under Section 1031 there is no taxable gain or loss recognized where property held for investment or business is exchanged solely for the property of like-kind which is to be held for investment or business.  The Replacement Property must be identified within 45 days of the first Relinquished Property closing.  The entire transaction must be completed by 180 days from the first Relinquished Property.
The exchange documents must be approved by the taxpayer’s tax advisor and the transaction will also require an authorized title insurance agent.   

John Lippincott is a REALTOR® with

A Licensed Real Estate Brokerage.