A 1031 exchangeA 1031 Exchange is a means used by investors to defer the payment of federal income taxes. The owner of an investment property will sell that property, deposit the funds with an intermediary company, later buy a replacement like kind property and defer the payment of all federal income taxes. There are many rules that apply to these type of exchanges. may be an interestInterest is money charged for the use of borrowed funds. Usually expressed as an interest rate, it is the percentage of the total loan charged annually for the use of the funds.-free loanA Loan is an amount of money that is lent to a borrower, who agrees to repay it plus interest. from the government. A 1031 exchange can be useful when someone inherits a property after the owner’s death. A 1031 exchange can help you take advantage of a step up in tax basis.
1031 Exchange: Death And Taxes
© Ilyce R. Glink. All rights reserved. This content may not be used, distributed, syndicated, compiled or excerpted in any medium or form without written authorization from Think Glink, Inc. For information on syndicating ThinkGlink.com please contact us.