{
  "url": "sellingrealestateflorida.com/faq/what-is-a-1031-exchange-and-how-does-it-work-for-investment-properties",
  "name": "What is a 1031 Exchange and how does it work for investment properties?",
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      "name": "What is a 1031 Exchange and how does it work for investment properties?",
      "@type": "Question",
      "acceptedAnswer": {
        "text": "A 1031 Exchange, also known as a like-kind exchange, allows an investor to defer capital gains taxes when selling an investment property if the proceeds are reinvested into a similar type of property within specific timeframes. This strategy is frequently used by investors to grow their portfolios without immediate tax burdens. Strict IRS rules apply, including identifying a replacement property within 45 days and closing within 180 days. A real estate professional can help identify eligible properties and work with qualified intermediaries to ensure compliance, especially when dealing with various property types in the South Florida market.",
        "@type": "Answer",
        "description": "A 1031 Exchange defers capital gains tax when reinvesting investment property proceeds into a like-kind property within IRS-specified timeframes."
      }
    }
  ],
  "description": "A 1031 Exchange defers capital gains tax when reinvesting investment property proceeds into a like-kind property within IRS-specified timeframes."
}