You hear a lot about 1031 Exchanges in the media regarding Boston’s investment property market. Especially around tax season, it becomes a hot topic to those looking to build their real estate portfolios. But what really is it? Bobby Quinn of Charlesgate Multifamily takes a minute to explain:
“A 1031 tax exchange is something that all real estate investors have heard about, but many people do not truly understand. At its essence, a 1031 exchange is a tool that real estate investors can use to avoid capital gains tax indefinitely, so long as they follow the 1031 rules and continue to invest in “like kid” real estate assets. Essentially, in lieu of paying the standard federal tax on a realized gain from the sale of an investment property, an investor can defer the tax due on the sale of the asset by reinvesting the proceeds into another “like kind” property…” Read the rest of the article.
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