How Does a 1031 Exchange Work with Rental Properties?

Analyze the full background How Does a 1031 Exchange Work with Rental Properties with clear explanations.

Section 1031 of the Internal Revenue Code allows an owner of investment property to exchange property and defer paying federal and state capital gain taxes (up to 15% Federal, 25% depreciation recapture and applicable state taxes) if they purchase a “like-kind” property following the rules and regulations of the Internal Revenue Code.