What is a 1031 exchange?

By April 20, 2017 Inman No Comments

In this video, Peter Lorimer of PLG Estates explains what a 1031 exchange is in real estate; 1031 refers to tax code. It means you can sell a property and not have to pay as much in taxes.

Backing up, there are some tax benefits to real estate. For example, if you are a married couple in the state of California, and you sell your prime residence that you have lived in for two of the past five years, you can have $500,000 tax free.

But what if you’re a real estate investor?

Let’s say you build a 10-unit building, and you own it for five years, but it’s not your primary residence. You ...

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