What You Need to Know about Cost Segregation and 1031 Exchanges
We have written extensively about 26 U.S. Code & 1031 , both ourselves and in other publications. Known as the "1031 exchange" or the "like-kind exchange," Internal Revenue Code Section 1031 allows for the "exchange of real property held for productive use or investment" as a tax deferral strategy. Capital gains taxes can be postponed for investors who follow the rules for "exchanging" relinquished properties for like-kind properties. A concept that may not be as familiar is cost segregation. The combination of cost segregation with the 1031 exchange process, however, allows you to defer capital gains taxes on the sale of real estate assets, as well as benefit from larger deductions. In this article, the leadership team from Riverside 1031 will discuss exactly that.