1031 Exchange Tax Deferral
The capital gain and recaptured depreciation tax imposed when a capital asset is sold is one reason of many justifying a 1031 exchange. Other reasons to consider include cash flow, location, appreciation, asset preference and labor intensity.
The taxes triggered upon sale or real and personal property may include:
- Federal and State Capital Gains;
- Possible County Capital Gains;
- Recaptured Depreciation;
- Sales Tax;
- Use Tax;
- Excise Tax.