Tax Code 1031
There are many common misconceptions when it comes to the 1031 tax code. Some people believe that an owner must swap or trade properties in order meet the requirements of a 1031 exchange. In the past, this was indeed mandated. Today, however, investors can purchase and sell property in the normal way. All that is required is the reinvestment of returns from the sale in compliance with tax code 1031. Another popular misconception is related to the type of property you can acquire. Many people think purchasing a similar type of property is required in a 1031 exchange. "Like-kind" is a phrase commonly associated with 1031 exchanges. However, the term really only means you must purchase real property held for use in business or investment. For example, you could sell an apartment building and purchase a warehouse or sell vacant land and acquire a shopping center. You could also sell two properties and use the proceeds from that sale to purchase just one new property. Likewise, you could sell one property and acquire three or four properties. Often, those new to 1031 exchanges believe they are very complicated and not worth pursuing. This is simply not the case. The 1031 exchange process can be quite simple. This is especially true when the process is handled with the help of a 1031 exchange specialist. At TM 1031 Exchange, we are happy to assist you in your 1031 exchange. We have the expertise, tools, and resources to help make your 1031 exchange as smooth and simple as possible. Please call us for information about locating 1031 replacement properties toll-free at 1-877-4TM-1031 or email team@tm1031exchange.com
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