Advantages of a 1031 Exchange

• Defer payment of taxes without penalty or interest
• Consolidate or diversify investments
• Increase cash flow
• Relocate a business investment
• Eliminate management problems
• Leverage
• Financial & Estate Planning

Disadvantages of a 1031 Exchange

• Transferred basis
• Increased transactional costs including tax/legal adviser fees, exchange fees
• Tax consequences of accepting proceeds