1031 Exchange for Dummies: Overview & Like-Kind Rules
Mar 23, 2024
A 1031 exchange is named after Section 1031 of the Internal Revenue Code. It allows real estate investors to trade one investment property for another and avoid capital gains taxes in the process. Simply put, it’s like changing one investment property for another without instantly paying taxes on the profit.
Types of 1031 Exchanges
The five common types of 1031 exchange are:
- Delayed 1031 Exchange
- Reverse 1031 Exchange
- Improvement 1031 Exchange
- Partial 1031 Exchange
- Simultaneous 1031 Exchange