SECTION 1031 - TAX DEFERRED EXCHANGES: 'REAL ESTATE'S BEST-KEPT SECRET FOR TAX RELIEF'.(Brief Article)

From: Real Estate Issues | Date: December 22, 2000| Author: | Copyright information

One of the least understood tax relief provisions of the Internal Revenue Code (IRC) is the tax-deferred exchange under Section 1031 of the IRC. Although the tax shelter days are basically gone for real estate investors, and the passive loss regulations work against them, the tax-deferred exchange lives on as a viable and excellent alternative to defer income taxes upon the sale of real estate.

An exchange is broadly defined as a reciprocal transfer of real property that has certain tax advantages over a sale. Definite procedures must be followed in order to qualify the ...

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