What is a 1031 Exchange? First, why do we refer to this type of transaction as a 1031? The reason is because its name comes from the U.S. Internal Revenue Service Code Section 1031. It is found at U.S.C Sec. 1031. The 1031 Exchange is a way to sell real estate by taking the money from the sale and putting it toward the purchase of a new real estate property.
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