Even though tax saving is the primary goal of a 1031 exchange, but several protruding options for its applications play a major role in the investment and business strategy. A key reason to use 1031 exchange is it permits the capital gains taxes to defer that are incurred immediately after a traditional of a farm or ranch land. A primary residence isn’t a qualified exchange property, hence, popular uses of such 1031 exchanges work around business and investment opportunities. Let’s examine the top uses of a 1031 exchange.
