Tax-Deferred Exchanges

 House Model Made of Money

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
  • Two-Party Trade
  • Three-Party Format
  • Delayed Exchange
  • Multiple Sales and Acquisitions
  • Reverse Exchange
  • Improvement Exchange

Top Seven Reasons Investors Perform Tax-Deferred Exchanges