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Browse our investment glossary and get clear on key 1031 exchange, tax, financial, and investment-related terms.

What is a 1031 Exchange? [Definition]

1031 Exchange 
A “1031 exchange” allows an investor to defer the capital gains taxes that would otherwise be due on the sale of an investment property if an investment property of like kind is acquired under Internal Revenue Code (IRC) section 1031. Specific IRS regulations for 1031 exchanges are laid out in Treasury Regulation section 1.1031.

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