Trading Up
The basics on Section 1031 exchanges.
Afraid of the capital gains bill you'll pay unloadingbusiness or investment property that soared in value during thereal estate boom? Don't sell--swap. A Section 1031 exchangeallows you to sell a property used for business or investment andreinvest your gains in a second property--also used for business orinvestment--without paying taxes on your profit, says DerrickKinney, senior financial advisor with Ameriprise Financial inArlington, Texas.
Permissible since 1990, 1031 or "like kind" exchangeshave increasingly come into favor, thanks to soaring propertyvalues. "The buzz around these is just beginning," saysKinney, who notes that exchanges offer a way to address the taxproblem highly appreciated property can present.
Continue reading this article - and everything on Entrepreneur!
Become a member to get unlimited access and support the voices you want to hear more from. Get full access to Entrepreneur for just $5.
Entrepreneur Editors' Picks
-
When Her Parents' Restaurant Burned Down, This First-Generation Founder's Hot Sauce Brand Rose From the Ashes to Take on Corporate Giants
-
Not Hitting Your Goals? Here's How to Know If You Should Change Tactics or Strategy.
-
You Can Generate Your Own Viral LinkedIn Post With This Hilarious Tool
-
This Couple Lost Everything When the Housing Market Crashed. But Manifesting 'Magic' Helped Them Launch a Metaphysical Brand With 10 Stores.
-
The Best Software Solutions and Tech Providers in the Franchising Industry
-
This 18-Year-Old Student Wanted a Better Way to Keep Track of His School Work. So He Built an App — and a Business.