What Is The Internal Revenue Code 1031 In SFR Investing?

IRC Section 1031 allows deferral of capital gains and depreciation recapture taxes when exchanging properties for like-kind replacements.

Section 1031 of the Internal Revenue Code permits exchangors to defer capital gain tax and depreciation recapture tax when exchanging relinquished single family rental investment property for like-kind or like-class replacement property. This is commonly known as a 1031 Exchange.

The information in this article is for educational purposes only and does not constitute tax, legal, financial, or investment advice. Consult a qualified professional before making investment decisions.