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    What is a 1031 Exchange?

    Terry Peterson
    Commercial & Residential Realtor®

    Experienced Commercial Appraiser
    Charleston Agent Team Lead
    • 1031 Exchange is the selling of one investment property and the buying of another “like-kind” property within a specified timeframe under certain restrictions
    • If your “exchange” meets the requirements then capital gains from selling can be deferred
    • There is no limit to how many times of, or frequency of, exchanges
    • In select cases it can be applied to a former primary residence
    • 1031 Exchange gets it’s name from IRS Code Section 1031

    As a commercial and residential agent as well as an experienced commercial appraiser, I can direct you to properties that may fit your Section 1031 Exchange requirements.  However, it is most crucial for you and your CPA to have a firm grasp of how the IRS code requirements apply to your situation.  Beyond this extremely high-level summary of a the 1031 Exchange process, if you believe this is an investing path you intend to pursue then I must direct you to start by doing some of your own research and then consulting your CPA. A few good sources include: