A 1031 exchange (IRS Code Section 1031) gives an option to the investor by reinvesting the proceeds from the sale of investment property (known as the "relinquished property") into qualified replacement property to defer capital gains tax. The net result is that the exchanger can use 100% of the proceeds (equity) from their sale to buy another property and defer the capital gains tax.
Property involved in a 1031 tax deferred, like kind exchange must be held for productive use in a trade or business, income production (rental) or investment purposes. source https://bit.ly/2BpzERG
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Learn 1031 exchange and its terminology
NezařaditelnéA 1031 exchange (IRS Code Section 1031) enables investors to defer capital gains taxes by reinvesting the proceeds from the sale of their investment property, known as the "relinquished property", into a qualified "replacement property". more detai...
