1031 Exchange Explained

Internal Revenue Code provides that no gain or loss shall be recognized on the exchange of income real estate is held for productive use in a trade or business, or for investment. A tax-deferred exchange is a method by which a real estate investors trades one or more relinquished income real estate for one or more replacement income real estate of like-kind. Such an exchange allows the issuer to defer the payment of federal income taxes and some state taxes on the transaction.

The theory behind internal revenue code is to allow the real estate investors to reinvest the sale proceeds into another income real estate, foregoing any economic gains that may have been realized from the sale. If you have recently sold, or are thinking of selling income real estate, we can assist in matching you with a qualified 1031 realtor. A 1031 realtor can help you explore your 1031 exchange options. Contact us today for a free consultation.

Benefits of a 1031 Exchange

Benefits to a 1031 exchange include:

1031 Exchange Benefits
  • Deferred capital gains taxes

    1031 Exchange Benefits
  • The potential to yield more cash flow on an annual basis

    1031 Exchange Benefits
  • More money to reinvest in a newer income real estate due to zero capital gains taxes calculated on the old income real estate

  • Consolidate your investment portfolio by electing a tenancy in common exchange

    1031 Exchange Benefits
  • Achieve your investment goals

    Find A 1031 Realtor

    Very often 1031 exchanges can be riddled with a myriad of potential tax and legal pitfalls. For this reason, it is strongly suggested that each real estate investor elect a licensed 1031 realtor to oversee their transaction. This 1031 realtor (read registered representative) will be able to facilitate the exchange in a timely manner while watching out for the real estate investor's best interests and investment objectives.

    A 1031 realtor will work with you throughout the exchange process to do all of the following:

    1. Develop your investment strategy
    2. Determine viable like kind replacement income real estate for the exchange
    3. Answer any questions you may have regarding the exchange process
    4. Manage the exchange from start to finish

    1031 Real Estate

    In general, the tenancy in common opportunities we offer are institutional grade income real estate. Such income real estate often have tenants subject to long term leases with major credit tenants.

    Income Real Estate are in various locations throughout the U. S. and include office, retail, industrial and multi-family income real estate types.

    The demand for high quality tenancy in common income real estate is so strong that the offering period is often quite short. If you have any questions regarding your particular needs and circumstances, contact us.


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