Under section 1031 of the Internal Revenue Code, a real property owner can sell his property and then reinvest the proceeds in a new property and defer the capital gains taxes.

The Internal Revenue Code 1031 tax code states:
"No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like-kind which is to be held either for productive use in a trade or business or for investment."

To qualify as a like-kind exchange, property exchanges must be done in accordance with the rules set forth in the tax code and in the treasury regulations. The 1031 exchange can offer significant tax advantages to real estate investors.

Often overlooked, a 1031 exchange is considered one of the best-kept secrets in the Internal Revenue Code.

This section of the Excalibur 1031 Group website is designed to provide a detailed introduction to the intricacies of 1031 exchanges. Of course, our team of experts are here to provide you with any other additional help or advice you may require along the way.

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