The purpose of a 1031 exchange is to allow an investor to defer — or maybe avoid altogether — the payment of federal and state capital gains tax when exchanging like-kind property. An investor places the proceeds from selling property — a commercial building, or an apartment complex, for example — with the intermediary while searching for like-kind property to obtain in exchange. If an audit reveals all 1031 rules have not been followed, the exchange will be disallowed and the investor is left to pay state and federal capital gains taxes, plus any penalties and interest assessed. Sponsorship of the seminar by Mission Bank 1031 Exchange is an effort to protect investors and give Kern County attorneys and accountants up-to-date information for structuring successful transactions. read more

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