A 1031 exchange, also called a like-kind exchange or a Starker, is a swap of one business or investment asset for another. Peterson Commercial Group specializes with clients in using this investment tool to increase portfolio's.
Do it right, and there is no tax. You change the form of your investment without cashing out or paying tax. And like a 401(k), that allows it to continue to grow tax-deferred.
There is no limit on how many times you can do a 1031. You can roll over the gain from one piece of investment real estate to another, then another and another. You may have a profit on each swap, but you avoid tax until you actually sell for cash. But be careful and do it right.
We work with investors every month that have a need to purchase or sell an investment property and using a 1031 exchange or a reverse 1031 exchange is an AMAZING tool to defer capital gains. There is no limit on how many different 1031 exchanges a person can do.
If you would like the specific rules on 1031 exchanges please contact us for more information.
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