1031 Exchanges are a Powerful Tax Strategy

Tax-deferred exchanges have been a part of the tax code since 1921 and are one of the last significant tax advantages remaining for business owners and taxpayers. One of the key advantages of a 1031 exchange is the ability to dispose of a relinquished property without incurring a capital gain tax liability in the current tax year, thereby allowing the earning power of the deferred taxes to work for the benefit of the taxpayer instead of the government.