Based on an IRS rule, the 1031 exchange is also known as a tax-deferred exchange. It’s a simple strategy and method for selling qualified property and then acquiring or “exchanging” it for another qualified property within a certain, specific timeframe.

1031 exchange transactions are a lot like a typical buying and selling transaction. The main difference is that the entire transaction is treated as an exchange and not just as a regular sale.

In simple terms, sales are taxable with the IRS while 1031 exchanges are not. Contact us for details about how these transactions work as our team of professionals handles 1031 exchanges almost every day.