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Cape Cod Homes and Rental Properties
1031 Exchange
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Section 1031 of the Internal Revenue Code provides that no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business, or for investment. A tax-deferred exchange is a method by which a property owner trades one or more relinquished properties for one or more replacement properties of "like-kind", while deferring the payment of federal income taxes and some state taxes on the transaction.
Four Basic Rules of 1031 Exchanges
- Property must be held for investment or productive use in trade or business.
- Property must be exchanged for like-kind property.
- Replacement properties must be identified within 45 days after the relinquished property is transferred.
- The exchange must be completed (replacement property received) by the earlier of 180 days or the tax return due date.
For more information, click on this link: 1031 Exchange FAQs
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Proudly doing business in the following Cape Cod and southeastern Massachusetts towns and villages: Barnstable, Bourne, Brewster, Buzzards Bay,
Centerville, Chatham, Cotuit, Craigville, Dennis, Eastham, Falmouth, Harwich, Hyannis, Hyannisport, Marstons Mills, Mashpee, Orleans, Osterville,
Plymouth, Provincetown, Sandwich, Truro, Wellfleet, Woods Hole, Yarmouth, Yarmouthport
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