What is a 1031 roll over?
1031 Exchange Rules and Deadlines
A 1031 exchange occurs when real estate investors sell one investment property (the relinquished asset) and roll the proceeds over into a “like-kind” property (the replacement asset). By completing exchanges, investors can defer any capital gains liabilities on their profits.
Is it worth doing a 1031 exchange?
Why Would Someone Want to do a 1031 Exchange? Investors really like a 1031 exchange because they avoid paying taxes. The more taxes investors pay Uncle Sam, the less cash they have to reinvest.
What is a rollover in real estate?
A real estate rollover is a type of property exchange that allows the investor to roll their gains over into like-kind property. This transaction is called a 1031 exchange. Because gains from the relinquished property are rolled into the acquired property, taxes on those gains are deferred.