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1031 Exchange Explained

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. 1031 Exchanges structured as TIC provide property investors a range of opportunities to meet personal investment objectives. This includes commercial property type and geographic diversification, and, most importantly, the elimination of day-to-day commercial property management obligations.

Contact us today if you are interested in rolling over a commercial property investment through a 1031 exchange. We can match you with a licensed broker who can manage your exchange.