Escrow & Title

What is a 1031 exchange and how does it benefit Nevada real estate investors?

AA loan program for Nevada veterans buying investment property

BA tax-deferred exchange allowing investors to defer capital gains tax when swapping like-kind investment properties✓ Correct

CA title insurance program covering rental properties

DA Nevada law requiring disclosure of investment property income

Explanation

Under IRC Section 1031, Nevada investors can defer capital gains taxes by exchanging one investment property for another 'like-kind' investment property. Strict rules apply including 45-day identification and 180-day exchange periods.

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Key Terms to Know

1031 Exchange

A tax-deferred exchange allowing investors to sell one investment property and reinvest proceeds in a like-kind property while deferring capital gains taxes.

Title Insurance

Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.

Debt-to-Income Ratio (DTI)

A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.

Pre-Approval

A lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.