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. 1031 ownership has become the preferred investment vehicle for real property investors who wish to defer capital gains via an exchange and own real commercial property without the management headaches.

If you are interested in learning more about TIC investment exchanges, a type of preferred type of exchange, contact us and we will gladly refer you to a licensed representative.

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