1031 Exchange Explained

Internal Revenue Code allows a real estate investor of income real estate to exchange income real estate and defer paying federal and state capital gain taxes (20%+ applicable state taxes) in the event that they purchase a like-kind income real estate. 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, while deferring the payment of federal income taxes and some state taxes on the transaction.

Completing a 1031 exchange with a tenant in common interest ownership in an income real estate allows real estate investors not only to defer their capital gains taxes, but to also upgrade their income real estate into larger, institutional-grade income real estate. Essentially, 1031 exchanges allow real estate investors to use all of the proceeds from their sale as leverage to gain access to more valuable income real estate.

If you are thinking of transferring any income real estate, contact us today for more information on 1031 exchanges.

Benefits of a 1031 Exchange

Several benefits befall any 1031 exchange real estate investor, including:

1031 Exchange Benefits

Deferred capital gains taxes

1031 Exchange Benefits

Increased cash flow on a monthly basis is a strong possibility

1031 Exchange Benefits

More money to put as a down payment on your new income real estate

Pick and choose the type and location of the replacement income real estate that best suites you

1031 Exchange Benefits

Do away with the struggles of traditional income real estate management

1031 Exchange Benefits

Achieve your investment objectives

1031 Exchange Benefits

The tax dollars saved through a 1031 exchange may be maximized to increase cash flow and overall net worth.

1031 Exchange Benefits

Consolidate your investment portfolio by electing a tenant in common exchange