1031 Exchange | 1031 Ask

A 1031 exchange, also known as a like-kind exchange, is a tax-deferred strategy under Section 1031 of the Internal Revenue Code that allows real estate investors to exchange investment properties without triggering capital gains tax. This strategy is commonly used by investors with low tax basis to defer recognition of taxes while maintaining continuity of investment in real estate. The rules and regulations surrounding 1031 exchanges have evolved over the years. The National Association of Realtors provides valuable resources and guidance for investors navigating the 1031 exchange process.