Exchange Explained

Exchange Explained

A tax-deferred exchange is a method by which a property investor trades one or more relinquished commercial properties for one or more replacement commercial properties of like-kind, while deferring the payment of federal income taxes and some state taxes on the transaction. In turn, internal revenue code provides that no gain or loss shall be recognized on the exchange of commercial property held for productive use in a trade or business. More importantly, completing an exchange with a tenants in common interest ownership in a commercial property allows property investors not only to defer their capital gains taxes, but also to upgrade their commercial property investment into larger, institutional-grade commercial properties.

If you recently sold an investment commercial property or you're considering selling, we can match you with a 1031 broker that can help you explore your exchange options. Contact us today for a free consultation.

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