TIC 1031 Exchange Explained

TIC 1031 Exchange Explained

Irs Section 1031 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. TIC 1031 Exchanges are typical sales and purchases that involve the same exact ingredients as any other sale or purchase, without the capital gains. The only real difference is the property investor is increasing his or her selling and buying power by electing to rollover their investment into another like kind TIC 1031 property. No other aspects of the transaction are affected.

Contact us if you are interested in retaining the wealth of your commercial property investment and we will match you with a qualified TIC 1031 realtor in your area.