Exchange Explained

Exchange Explained

Internal Revenue Code relates to the disposition of commercial property that is held for investment purposes or used in productive business. If performed properly, internal revenue code provides an exception to the rule requiring the payment of capital gains tax upon the sale or exchange of commercial property. 1031 Exchanges are useful in a wide variety of circumstances. They provide excellent opportunities for resourceful property investors to create transactions which would not be possible through a sale/purchase format. The overriding advantage of exchanging lies in the ability to move equity from commercial property to commercial property without having to pay the capital gains taxes. exchangers can create an entire investment program using the wide variety of benefits available, and a property investor can move successively from one exchange to another any number of times.