A tax deferred exchange is a method by which a taxpayer trades property, held for investment or business purposes, for replacement property resulting in a deferral of tax on the transaction. Whenever you sell business or investment property and you have a gain, you generally have to pay tax on that gain. This capital gains tax varies depending upon your particular situation.

1031 Exchanges are often referred to as “tax free exchanges” as the transaction itself is not taxed. Section 1031 of the Internal Revenue Code provides an exemption from current recognition of realized gain, providing that the requirements of the IRC are carefully met. Using our service will allow you to use more of your equity to acquire the property you desire by deferring capital gains tax.