A 1031 exchange, also known as a like-kind exchange, is a valuable tax-deferral strategy that enables real estate investors to sell one property and acquire another without incurring immediate capital gains taxes. However, not every real estate transaction qualifies for this tax-saving mechanism. In this blog post, we’ll explore the essential eligibility criteria that determine whether you would qualify and benefit from a 1031 exchange.
To get started, here is simple guide that can help determine if your situation qualifies for a 1031 exchange and if an exchange is the best option for your upcoming real estate transaction.
On the other hand, here are a few scenarios that may disqualify or deter you from a 1031 exchange.
These checklists should give you a good idea whether a 1031 exchange is the right fit for your situation or not. If you determine a 1031 exchange is right for you, Menlo 1031 stands ready to help. Contact us to get started.