You might not be a tax expert, and phrases like “1031 exchange” or “like-kind exchange” may send you running for another cup of coffee just to stay awake, but chances are it’s an issue that matters to you.
At an event in Washington, DC, today, the National Association of Realtors® released a survey on the importance of 1031 exchanges. According to their findings, 63 percent of Realtors® participated in a like-kind exchange between 2011 and 2015, and residential properties accounted for the largest portion of these deals.
These tax provisions, which have been in place since 1924, allow anyone exchanging one piece of property for another to defer taxes on capital gains.
So if you can get past the wonky tax lingo, this one probably matters to you.
Want to know more? Check out these “5 things to know” about 1031 like-kind exchanges.
Or, watch our LIVE recording of Danielle Hale from the National Association of Realtors® as she discusses the findings of NAR’s survey.