Tax-Deferred Exchanges
Types of Tax-Deferred Exchanges
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Internal Revenue Code Section 1031 Section 1031 (like-kind exchanges) offers the opportunity to exchange one property for another, and defer (not currently pay tax on) the gain until the new property is later disposed of in a taxable transaction. In addition, there is no limit to the number of times a taxpayer can take advantage of Section 1031 exchanges. |
Types of Tax-Deferred Exchanges
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Two-Party Trade
- Three-Party Format
- Delayed Exchange
- Multiple Sales and Acquisitions
- Reverse Exchange
- Improvement Exchange
Top Seven Reasons Investors Perform Tax-Deferred Exchanges
- Leverage
- Diversification
- Consolidation
- Cash Flow
- Management Relief
- Increase Depreciation
- Estate Planning


