Term: 1031 Exchange (Legal Term)

Field: Legal Term

Definition:
Section 1031 of the Internal Revenue Code allows for the disposition of interests in commercial real estate assets on a tax free basis so long as the proceeds from sale are transferred into "like kind" assets within a time period certain in compliance with section 1031. For more information on 1031 exchanges you can contact the Internal Revenue Service or a professional advisor such as Pacific Security Capital.