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Exchange Explained


Exchange Explained

Internal Revenue Code allows a property investor of investment commercial property to exchange commercial property and defer paying federal and state capital gain taxes (20%+ applicable state taxes) in the event that they purchase a like-kind commercial property. A tax-deferred exchange is a method by which a property investor trades one or more relinquished commercial properties for one or more replacement commercial properties of like-kind, while deferring the payment of federal income taxes and some state taxes on the transaction. More importantly, completing an 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 exchange options. Contact us today for a free consultation.

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