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What is a 1031 Exchange?

Whenever you sell land, investment or business property and you have a gain, you generally have to pay tax on the gain at the time of sale. IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in other investment property. Be sure to work with a professional who specializes in 1031 Exchanges, as failure to follow the IRS guidelines will forfeit your exchange.

Some of the strict guidelines are:

  • All proceeds from the original property sale must go through the hands of a “Qualified Intermediary” (QI) and not through your hands or the hands of one of your agents.
  • You have specific and unforgiving timelines in which to identify and close on your replacement property/properties.
  • You must ensure your legal documents are in compliance with the laws and regulations for 1031 Exchanges.

Reasons to Consider a 1031 Exchange

  • Deferral of tax on capital gains and depreciation recapture
  • Relieve the burden of active real estate ownership and property management
  • Improve tax-advantaged cash flow and appreciation potential
  • Ability to exchange into higher quality property
  • Achieve greater diversification
  • Aligning assets into estate planning objectives

Our Process

Learn how we work to ensure a smooth transaction.

We believe that our process is what sets us apart and makes us unique. When we work with you, we truly aim to understand your goals because without a grasp on what you’d like to accomplish, we can’t navigate to the destination. We’re also proud to work with connections we already have or with the relationships you bring with you, ensuring that you feel comfortable and confident in your team. With the help of a clear vision, we can help you strive toward the horizon and achieve the growth your land and your retirement so richly deserve.

Our Professional Process

Planting the Seeds of Opportunity