By Avenue 3 Real Estate
What is a 1031 tax-deferred exchange for Real Estate?
1031 Exchanges allow investors to sell property and reinvest the proceeds in another property without having to pay taxes that would otherwise be recognized gain from the sale (capital gains tax). The payment of such capital gains tax is deferred.
(Example: selling your 2 family income property in Arlington MA and purchasing a rental property in Osterville, MA)
A tax-deferred exchange is a method by which a property owner trades one...