1031 exchange
A 1031 exchange is a tax rule that lets an investor defer capital gains tax when selling an investment property and buying a like-kind replacement, if specific requirements are followed.
A 1031 exchange is a tax rule that lets an investor defer capital gains tax when selling an investment property and buying a like-kind replacement, if specific requirements are followed.
Why it matters to a Las Vegas investor
Investors use exchanges to move from one Las Vegas property to another without an immediate tax bill on the sale. The rules are strict about timing and the handling of funds, so professional guidance matters. This entry is general information and not tax advice.
Read more from Fernwood
- A Safer 1031 Exchange Process
- Potential 1031 Exchange Pitfalls to Avoid
- 1031 Exchange Replacement Property Strategy
Related terms
Questions about 1031 exchange
Does a 1031 exchange eliminate tax?
It defers tax on the gain and does not remove it. Details depend on your situation, so speak with a tax professional.
Can I receive the sale proceeds myself?
Generally the proceeds must be held by a qualified intermediary instead of being received directly by the investor. The rules are strict, so get professional advice.