Definition of "Section 1035 exchange"

Simon Westfall Kwong real estate agent

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Keller Williams Realty

Section of the Internal Revenue Code that provides for the taking of the proceeds from one life insurance policy or annuity and the reinvesting of these proceeds immediately in another life insurance policy or annuity of the same type without being required to pay a tax on any gain. This exchange should be handled by the seller of the replacement, life insurance policy or annuity.

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