1031 Tax Exchange…

A 1031 Like-Kind Exchange is a tax deferred exchange transaction under Section 1031 of the Internal Revenue Code. This section allows for the sale of certain types of real and personal property with the deferral of payment of capital gains tax at that point. The essential key is the language in the code which states: “No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment purposes if such property is exchanged solely for property of a like-kind which is to be held for either productive use in trade or business or for investment purposes.” 

This means that you must choose replacement property which is like-kind and you (the investor) cannot receive any boot (cash or other benefits) at the closing. First Priority Title Company Inc. has the attorneys and staff that are uniquely qualified to prepare all of the appropriate documents for a 1031 tax exchange.