What is a 1031 Tax Deferred Real Estate Exchange?

When the proceeds from the sale of investment real estate are used to purchase other like-kind investment real estate, you should consider a tax-deferred exchange.  The use of an accommodator or qualified intermediary throughout your transaction is recognized as a Safe Harbor by the IRS.

The sale and purchase of investment property can be done as a Delayed Exchange or a Simultaneous Exchange, both qualify for tax-deferment. There are important guidelines and tricky pitfalls you need to be aware of if you want total tax-deferment.

Kimball Realty can help you setup a 1031 tax-deferred exchange as well as explain the steps for your particular exchange.  Although we can not give specific tax advice, we do give consultations free of charge.  Please give us a call with your questions.