The 1031 exchange is a section of the tax code that allows investors to defer capital gains taxes when selling investment or business property. The 1031 exchange rules are complex, and there are many things that investors need to consider before filing an exchange.
In order to understand 1031 exchange rules 2021, it is important to first know the basics of what this type of exchange entails. A 1031 exchange is a tax-deferred swap of investment properties. This means that investors can trade one qualifying property for another, without paying any immediate capital gains taxes. There are a few rules and benefits that investors should be aware of before taking advantage of this opportunity.…Continue reading