Two things in life are certain: death and taxes.
You cannot determine the time of your death, but sometimes you can determine when you will pay taxes. A dollar not spent is a dollar earned. Internal Revenue Code § 1031 allows you defer paying taxes on investment/business property. In an ordinary sale transaction, the property owner is taxed on any gain realized by the sale of the property. In a 1031 exchange, however, you roll the gain from the sale of your “old” investment/business property into the purchase of your “new” investment/business property. To defer all of your capital gains tax, you must buy a property equal or higher in value than the one you sold. If you receive additional money or other property, then gain is recognized to the extent of such money and other (non-like-kind) property.
A Qualified Intermediary, an independent third-party, must be used to hold money during the 1031 Exchange. The lawyers of Malone Law Group PS are qualified to serve as intermediaries in 1031 Exchanges.