1031 Exchanges refer to Internal Revenue Code, Section 1031. Section 1031 defines an exception to capital gains taxes on properties. Property sellers are not subject to capital gains taxes if, upon sale, the money transacted funds another business property. In other words, property sellers investing in another business property have no obligation to pay capital gains taxes.
Friedberg Pinkas’ commercial and residential real estate practice frequently encounters such transactions. Reverse 1031 exchanges, holding periods, and qualified intermediary rules are often complex. The firm's combined experience of 65 years, though, ensures smooth and proper exchange procedures.