• The figure of 1031 was created by the IRS (Internal Revenue Service) to defer tax profit (capital gain tax).
• With the figure of "1031 Exchange" and following some simple rules, the investor can defer taxes when purchasing a new property and not pay anything for profit. This is a legal action where there is no tax evasion.
• When the property is sold, by law he has 45 days to select a new one. The IRS is strict with compliance on this term.
• If passed these 45 days the property is not found, the payment of taxes is mandatory.
• After you have found your desired property, the deadline for the closure is 180 days.
• The new property can be of equal or greater value, this way the profit tax will be transferred.