What Is A Real Property Exchange In SFR Investing?
A real property exchange is a tax-deferred 1031 exchange involving sale of relinquished property and purchase of like-kind replacement.
Real Property Exchange describes structured transactions under Section 1031 of the Internal Revenue Code. These transactions involve selling existing investment properties (relinquished property) and acquiring similar real estate (replacement property) to defer federal and state capital gains taxes and depreciation recapture obligations.
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.