1031 Exchange

A 1031 exchange is a tax-deferred swap of one business or investment asset for another. A 1031 Exchange is important in the selling or purchasing of similar, or like-kind property that the government considers an exchange versus a sale. A 1031 Exchange transaction allows sellers and buyers the ability to defer capital gains. At Premiere Title of South Florida, we understand tax implications and property qualifications and we do our best to educate our clients on the importance of this transaction.

Why is a 1031 Exchange Important?

A 1031 Exchange transaction is preferred by many parties in lieu of a separate sale of a business asset or investment and then a subsequent purchase.  A 1031 Exchange transaction equates to exchanging versus buying and selling, so that taxpayers can qualify for a capital gains tax deferral. Standard real estate sales are taxable,  but qualified 1031 exchanges are tax deferred. Understanding tax implications in the purchase or sale of property is important to us and to our clients.

At Premiere Title of South Florida, we know how to answer your questions about a 1031 Exchange, and we work with you to ensure your understanding of this important transaction.