An accommodating party is an intermediary in a Section 1031 exchange, often utilized in delayed (tax-free) exchanges to temporarily hold money or property to facilitate the exchange.
A Deferred Exchange, often termed as a Delayed or Tax-Free Exchange, refers to a real estate transaction facilitated under Section 1031 of the Internal Revenue Code, allowing the deferral of capital gains taxes on the sale of an investment property, provided another like-kind property is acquired within a specific timeframe.
A reverse exchange is a strategic real estate transaction where the buyer acquires a new property before relinquishing their old property, often to meet IRS Section 1031 requirements.
Rollover Home Sale refers to the tax-deferred sale of a principal residence before May 6, 1997, which allowed homeowners to defer gains if they purchased a replacement home. It is governed by Section 121 for principal residence sales after this date.
Section 1031 of the Internal Revenue Code allows for tax-deferred exchanges of certain types of property, enabling the deferral of capital gains taxes under specific conditions.
A Tax-Deferred Exchange, often referred to as a 1031 exchange, allows investors to defer paying capital gains taxes on real estate investments when one property is sold and a similar one is purchased within specified time frames.
