1031 Exchange

1031 Exchange – Smart Tax-Deferral Strategies for Investors

A 1031 Exchange allows property owners to defer capital gains taxes by reinvesting proceeds into a "like-kind" property.

The Three Main Rules of a 1031 Exchange

1. Like-Kind Property Rule – The replacement property must be similar in nature and use.
2. 45-Day Identification Period – Sellers must identify potential replacement properties within 45 days.
3. 180-Day Exchange Period – The transaction must be completed within 180 days.

Benefits of a 1031 Exchange

• Defers capital gains taxes, allowing full reinvestment of sale proceeds.
• Builds long-term wealth through tax savings.
• Diversifies real estate portfolios for stronger returns.

What Are "Like-Kind Properties"?

• Residential Rentals → Commercial Properties
• Apartment Buildings → Office Spaces
• Farmland → Retail Centers