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Why is the Section 1031 exchange such a powerful tool?

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Why is the Section 1031 exchange such a powerful tool?

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Why is the Section 1031 exchange such a powerful tool?

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Why is the Section 1031 exchange such a powerful tool?

The Section 1031 exchange is a powerful tool because it deters capital gains tax on both commercial and investment transactions made. This ability allows the taxpayer to exchange either real or personal property for new "like-kind" property, while having the ability to defer the recognition of any capital gains.

Back in 1984, Congress enacted legislation allowing deferred exchanges, so that an investor had the ability to sell property to an unrelated buyer, after the parties entered into an ...

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