By doing a 1031 tax-deferred exchange of like-kind property, a taxpayer can defer the payment of capital gains tax on the sale of an investment, business or rental property. This little known tax provision offers taxpayers the opportunity to continue to invest in real estate without having to pay capital gains tax.

In 1991 the IRS published regulations on how to do a like-kind exchange. These regulations established "safe harbors" and the essential role of the qualified intermediary.

Strict adherence to the regulations is essential to a successful tax-deferred exchange. To learn what these rules are, visit www.1031.us

copyright © Agent Image 2001

<<Back To Sellers