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1031 Exchange Explained

Internal Revenue Code provides that no gain or loss shall be recognized on the exchange of income property is held for productive use in a trade or business, or for investment. A tax-deferred exchange is a method by which an income property investors trades one or more relinquished income properties for one or more replacement income properties 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 income property investors to reinvest the sale proceeds into another income property, foregoing any economic gains that may have been realized from the sale. If you have recently sold, or are thinking of selling income property, we can assist in matching you with a qualified 1031 information expert. A 1031 information expert 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 property due to zero capital gains taxes calculated on the old income property

  • Consolidate your investment portfolio by electing a TIC exchange

    1031 Exchange Benefits
  • Achieve your investment goals

    Find A 1031 Information Expert

    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 income property investor elect a licensed 1031 information expert to oversee their transaction. This 1031 information expert (read registered representative) will be able to facilitate the exchange in a timely manner while watching out for the income property investor's best interests and investment objectives.

    A 1031 information expert 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 property for the exchange
    3. Answer any questions you may have regarding the exchange process
    4. Manage the exchange from start to finish

    1031 Income Properties

    In general, the TIC opportunities we offer are institutional grade income properties. Such income properties often have tenants subject to long term leases with major credit tenants.

    Income Properties are in various locations throughout the U. S. and include office, retail, industrial and multi-family income property types.

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