1031 Like-Kind Exchange vs Qualified Opportunity Zone - Which is best for me?
Like-Kind 1031 Exchanges and Qualified Opportunity Zones are valuable investor tools – understanding their use and benefits can produce profitable results. DISCUSSION Section 1031 Like-Kind Exchanges: Exchanges are allowed for business use or investment real estate only and have established, well understood rules that allow capital gains tax to be delayed indefinitely. They can be done regularly, say, every year or two. The investor must fully commit to the exchange with all aspects of transaction; that is, they must re-invest all of their equity, debt and gain, with no cash out, into another real property for maximum benefit. Exchanges require the use of a Qualified Intermediary (QI) and have been used extensively in the real estate industry and been part of the U.S. tax code since the 1920’s.