If selling an asset and wish to avoid capital gains tax, an IPX 1031 exchange may be what could benefit you. A 1031 exchange refers to the tax code which defines how taxpayers can sell one piece of property and then use the proceeds to buy a new one without having to pay taxes on the gains from the sale.
The code has some strict guidelines. For example, the properties in the exchange must be a similar type of property. So for example, you can’t see a commercial building and use the proceed to buy raw land and still qualify for the benefit.
