Just the Facts: 1031 Exchange
As the best title company at the Lake of the Ozarks , Arrowhead Title strives to educate our clients with title and real estate knowledge to help in the decision-making process. We find that our clients appreciate and are welcoming to the information to assist them in making these important decisions confidently. In this week’s blog, we’re going to be talking about 1031 exchanges – a strategic investment tool that can help savvy investors build wealth. What is a 1031 Exchange? A 1031 exchange is a “like-kind” investment strategy where investment property is swapped for anther. This allows savvy investors to defer capital gain taxes (until cash-out) and build wealth. The IRS Section 1031 mandates that only “like-kind” investment properties can be swapped, limits use with vacation properties, has certain time frames, and tax implications. The Rules for Depreciable Property When swapping property that is deemed depreciable by the IRS, it can trigger what’s called a depreciat...