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1031 Exchange Explained

Internal Revenue Code provides that no gain or loss will be recognized on the exchange of any type of business use or investment commercial property for any other business use or investment commercial property. This means that a 1031 exchange is a rollover of equity of like commercial properties, rather than an avoidance of tax and allows for the transaction to take place with full tax benefits attached. More importantly, completing a 1031 exchange with a tenants in common interest ownership in a commercial property allows property investors not only to defer their capital gains taxes, but also to upgrade their commercial property investment into larger, institutional-grade commercial properties.

If you recently sold an investment commercial property or you're considering selling, we can match you with a 1031 broker that can help you explore your 1031 exchange options. Contact us today for a free consultation.