WHAT IS A IRC SECTION 1034 PROPERTY?
IRC Section 1034 encompasses a primary residence only. A taxpayer is only allowed one primary residence, therefore, by reason of default, any other real property could be considered possible 1031 property. The only condition is that it meets the guidelines of Section 1031. WHY EXCHANGE PROPERTY INSTEAD OF JUST SELLING IT? The most important reason is to able to defer potentially taxable gain one may realize from a sale of the property. This way one may be able to use All OF THEIR EQUITY to acquire another property, instead of the amount of equity left over after paying applicable Federal and State income taxes on their gain. Additionally, the ability to go from one type of property to another allows an investor to utilize these other concepts: Leverage, Diversification, Cash Flow, Consolidation, Management relief, and possibly Increase their Depreciation. It is possible, under the current IRS Section 1031 rules, to continue to exchange properties, using all of your equity, thus increas
