1031 Exchange

What is a 1031 Exchange?
Under IRS Code Section 1031, no gain or loss is recognized if property held for productive use in trade or business or for investment is sold and the sale proceeds are used solely to purchase property of a like kind to be held either for use in trade or business or for investment. Paying taxes on your gain can be deferred indefinitely depending on what you do with the property that you purchase through the exchange.

What is a 1031 Reverse Exchange
The IRS now recognizes a taxpayers right to acquire a like kind of property using a reverse 1031 exchange procedure before selling the property, which is the subject of the exchange. Again, the payment of taxes on your gain can be deferred indefinitely.