If you own an investment property it is important to understand what a 1031 exchange is and the rules and tax implications for this type of real estate transaction. We recently sat down with Geneva Martinkus, President Exchange Counselor with Allied 1031 Exchange, to help highlight how 1031 exchange rules work for investment properties.
What is a 1031 Exchange?
A 1031 Exchange is a vehicle created by the IRS that allows a property owner to defer payment of capital gains tax from the sale of investment property. The sale proceeds are placed into an Exchange account with a qualified intermediary, such as Allied 1031 Exchange, and are then used to acquire a new investment property.
Why Exchange?
By deferring payment of capital gains tax, a property owner will have more capital available to acquire a new investment property. This will allow the investor to purchase more expensive property and/or receive greater cash flow on an income-producing investment.
Watch our 1031 Exchange Podcast by clicking the video below.
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Allied 1031 Exchange president Geneva Martinkus has over 20 years of real estate service experience. She previously worked at a regional title company, managing and operating the 1031 Exchange department as well as the Installment Collection and Foreclosure departments. Geneva has superior 1031 Exchange knowledge and can answer any questions you may have. Feel free to contact her directly at (775) 851-0881 or email her directly at genevaallied1031exchange.net. Visit the Company's website at http://www.allied1031exchange.net/.
