A properly structured 1031 exchange allows an investor to sell a property, to reinvest the proceeds in a new property and to defer all capital gains taxes. IRC 1031 (a)(1) states:
"No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like-kind which is to be held either for productive use in a trade or business or for investment."
- Many experts agree that SECOND or VACATION HOMES CAN BE ELIGIBLE "LIKE-KIND" PROPERTIES.
Exchanges protect property owners from capital gains taxes and facilitate significant portfolio growth and increased return on investment. To access the full potential of these benefits, it is crucial to have comprehensive knowledge of the exchange process and the Internal Revenue Code. For instance, an accurate understanding of the key term "like-kind" - often mistakenly thought to mean the same exact types of property - can reveal possibilities that might have been dismissed or overlooked. Asset Preservation Incorporated is your resource to obtain accurate and thorough information about the entire exchange process. We welcome all opportunities to discuss potential exchanges with property owners and their tax and legal advisers.
Please call our Eastern Region Operations Center toll-free at 1-866-394-1031, or our Corporate Offices at 1-800-282-1031 to talk with an Exchange Counselor, or browse our website, www.apiexchange.com.
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