A 1031 property exchange (also called a “like-kind exchange”) is a structured transaction that can avoid capital gains on a sale of real estate. In a traditional real estate sale, the profit on the sale are generally subject to taxation, but if the proceeds are instead used to purchase new, like-kind real estate, the properties are treated as a swap with no or limited tax liability. 1031 exchanges must be carefully structured in order to preserve the tax benefits. Blethen Berens can help you determine if your property qualifies for an exchange, avoid unintentionally realizing capital gains, and navigate the exchange process from beginning to end.
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