Tax Deferred Exchanges
The tax code permits, under certain circumstances, the owner of investment property to exchange that property for other investment property and defer the tax. These are commonly called “1031 Tax Free Exchanges”. Technically they are not tax free, just tax deferred. It is not necessary to actually directly exchange one property for another. It is possible to sell one property and buy another and defer the tax.
The tax code establishes very strict rules that must be met to qualify for 1031 tax free exchange treatment. At Williams, Kratcoski & Can LLC, our attorneys have assisted clients for over 20 years with successfully implementing 1031 tax free exchanges. If you would like to know more about Tax Free Exchanges, contact us in Kent, Ohio, to arrange a meeting with our real estate lawyers.