Section 1031 Tax-free Exchange

Definition of "Section 1031 tax-free exchange"

Debran Collins real estate agent

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Russ Lyon Sothebys International Realty

Section of the Internal Revenue Code that addresses tax-free exchanges of certain property. The general provisions for a tax-free exchange of real estate are that the properties must be like-kind property; exchanged; and held for use in a trade or business or held as an investment. Delayed exchanges are permitted within certain limits.

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