Planning Briefs
How To Swap Real Estate And Defer Taxes, Maybe Forever
Published Monday, April 1, 2019 at: 7:00 AM EDT
A tax-savvy way to improve your real estate situation is to swap one property for a new one. Called a 1031 exchange, referring to its section of the tax code, this works so long as you are switching business properties. Personal residences aren't eligible.While 1031 exchanges are often used by big commercial real estate operators, there's nothing stopping you from using the strategy for much smaller-scale holdings. The maneuver defers capital gains taxes, perhaps forever. This takes some planning. For instance, say you have a vacation house and would like to exchange it for a property in a location that...
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