Now is the time to learn more about how you can use the 1031 tax deferred exchange on your Virgin Islands real estate purchase. Find out about the taxes, exchanges, disadvantages, what properties qualify, partial tax free exchange, common exchange situations and how the 1031 tax exchange effects partnerships and seller financing by speaking with a qualified tax deferred Realtor.

Here’s how it works – Generally, if you exchange business or investment property solely for business or investment property of a like kind, no gain or loss is recognized under IRS code section 1031. However, if as a part of the exchange you also receive other (not like kind) property or money, a gain is recognized to the extent of the other property and money received, but a loss is not recognized.  The Section 1031 does not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness or certain other assets.