What are the Reasons and Benefits of Completing a 1031 Exchange?
Preservation of Equity A 1031 Exchange provides real estate investors with the opportunity to defer their Federal and State capital gain taxes. This essentially equals an interest-free, no-term loan on taxes due until the property is sold for cash! Most often, capital gain taxes are deferred indefinitely because many Exchangers continue to exchange from one property to the next, dramatically increasing the value of their real estate investments with each exchange.
