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IRS tax code 1031 provides guidelines for sellers to 1031 exchange into other "like-kind" real estate under very specific guidelines, to defer paying capital gains tax and depreciation recapture on the sale. We represent clients through the process of selling relinquished property, identifying exchange properties, closing, and coordinating with the client's 1031 accommodator. 

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The IRS tax code is structured to give individuals incentives to do things for the government and community, which the government cannot do itself. Therefore, to motivate investors to purchase, hold, and improve properties, the IRS offers the tax shelter of depreciation and bonus depreciation. The government likes real estate transactions in the economy, thereby the 1031 Exchange was created to defer the tax burden to investors, allowing them to roll into equal or greater "like-kind" properties. This defers the capital gains tax being paid on the sale, thereby allowing the tax savings to be reinvested with the profits into the next property. In turn, this encourages investors to leverage up in value multiple times, over a lifetime, for continued depreciation benefits.