Defer tax with a Section 1031 exchange, but new limits apply this year

Defer tax with a Section 1031 exchange, but new limits apply this yearNormally when appreciated business assets such as real estate are sold, tax is owed on the appreciation. But there’s a way to defer this tax: a Section 1031 “like kind” exchange. However, the Tax Cuts and Jobs Act (TCJA) reduces the types of property eligible for this favorable tax treatment.

The Section 1031 exchange: Why it’s such a great tax planning tool

The Section 1031 exchange: Why it’s such a great tax planning toolLike many business owners, you might also own highly appreciated business or investment real estate. Fortunately, there’s an effective tax planning strategy at your disposal: the Section 1031 “like kind” exchange. It can help you defer capital gains tax on appreciated property indefinitely.