Orlando Florida 1031 Tax Exchange Basics

 OK . . .     SO NOW WE HAVE YOUR ATTENTION.....

1031 Tax Exchange is a way to defer taxes when purchasing a property.  Some reasons to change or swap an old property for a newer property vary. 

As Realtors we know the basics about tax-deferred exchanges, but you should consult with your financial professional to explain and map out your plan for using a 1031 Tax Exchange before you engage in a Real Estate Transaction.  There are many rules and regulations on a 1031 Tax Exchange and if they are not followed exactly you could be liable for taxes. 

Basically you should never have to pay income taxes on the sale of property if you reinvest the proceeds in like-kind property.