• A 1031, Tax Free Exchange is a tax deferred exchange of real estate property.
• The exchange 0f real property allows the deferral of capital gains.
• An exchange is available for the purchase and sale of real property held for investment or business purposes.
• Personal residences do not qualify for an exchange.

Reasons for a 1031 Exchange:

• Boost in basis for future sale.
• Increased depreciation.
• Trading out of a high-maintenance property for a low-maintenence one.
• Liquidation of real estate assets.
• Avoid a taxable sale.
• Preserve equity or build a larger equity.
• Reduce indebtedness or assume greater indebtedness.
• Change investment location.
• Changes in trends have reduced income or prospective income (highest and best use).