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texas real estate glossary

Texas Homes & Real Estate Glossary
From 1031 Exchange to 936 Publication

Return to the Real Estate Glossary

721 Exchange - IRS Code, Sec. ยง721 Exchange permits an investor to contribute a property to a partnership. The investor's obtains interest in the partnership called operating partnership units (OP units). 721 exchanges are often used by REITs.

1031 Exchange - A section of the Internal Revenue Code that provides a way for the owners of business and investment real estate to sell their property and buy other like kind property without paying the capital gains tax. Investors are allowed to continue their investment in another property without losing investment equity in taxes.

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