In real estate, a 1031 Exchange is the swap of one investment property for another that allows capital gains on the sale to be deferred.
A 1031 Exchange gets its name from Section 1031 of the U.S. Internal Revenue Code, which allows you to avoid paying capital gains taxes when you sell an investment property and reinvest the proceeds from the sale within certain time limits in a property or properties of like kind and equal or greater value.
There are many intricacies involved, such as like-kind purchase requirements, timeframe limitations, and reverse 1031 processes.
After discussing your exchange needs with Adam, please consult a trusted financial advisor to ensure your exchange is a seamless transaction.