Using Royalties in a 1031 Exchange
Internal Revenue Code Section 1031, enables Investors to defer capital gain taxes from the sale of investment property by utilizing a 1031, tax deferred exchange. This is accomplished by reinvesting the proceeds into a “like-kind” property or properties.
Not widely understood in the real estate community, and a closely kept secret of some of the country’s wealthiest families, is the fact that minerals & royalties qualify as “like-kind”, making them eligible as a tax deferred exchange investment approach.
Resource Royalty is the leading provider of Mineral & Royalty 1031 exchange solutions for sophisticated, accredited investors. This is an excellent vehicle for investors seeking to expand their portfolio beyond real estate brick-and-mortar.