wiliam
11-08-2006, 06:44 AM
Internal Revenue Code, Section 1031, states that neither gain nor loss is recognized when the proceeds from the sale of assets such as real estate is reinvested in “like-kind” assets. This provides an opportunity to defer payment of capital gains tax, giving the owner access to more interest free money and the means to afford more expensive property. For further understanding, the following links www.havenexchange.com (http://www.havenexchange.com), www.irs.gov (http://www.irs.gov) can help you with their simple and informative explanations on the complex aspects of 1031 Exchange.