WHY SHOULD A REAL ESTATE BROKER OR AGENT UNDERSTAND EXCHANGING?
In today’s real estate climate, it is imperative that Real Estate Brokers and Agents understand the options a 1031 Exchange can offer their clients. Without such knowledge brokers and their agents are open to potential liabilities, due to lack of knowledge. Unfortunately, you can be as liable for what you don’t say, as well as for what you do say. Simply offering the option of a Tax-deferred Exchange can eliminate potential liability on the Broker’s part. The Exchange Agent can have more satisfied clients by offering them the option to save substantial tax dollars, through exchanging. The Exchange Agent can also increase their income with the additional knowledge of exchanging. WHAT IS 1031 LIKE KIND PROPERTY? The IRS Code Section 1031 states that property held for use in productive trade or business or property held for investment , is potentially exchangeable. One can therefore qualify for non recognition of gain upon the disposition of such property, assuming all other requirements
