1031 Exchange
(Like-Kind Exchange)
Buying and selling real estate property is a wise investment, so long as you can keep your money and put it to work for you. 1031 exchanges are a strategic choice for deferring taxes and maximizing real estate investments.
Our streamlined process, guidance from experienced professionals, and security measures to protect your financial interests will help you avoid capital gains taxes, preserve equity, ensure compliance, and save tax dollars.
Fast
Reliable
Transparent
Secure
Understanding 1031 Exchanges
Under Section 1031 of the IRS tax code, if you are a business owner who owns property, you can sell it and reinvest the proceeds into a replacement property, deferring capital gains taxes and avoiding depreciation recapture. You can even defer taxes indefinitely through successive delayed exchanges.
Eligibility Requirements for a 1031 Exchange
Unlike with a typical real estate sale, you can defer capital gains tax payments when you sell an investment property and acquire one of “like kind” – so long as the property is also used for your business or investment purposes, the exchange is completed within a 180 day timeline, and it meets IRS regulations. We guide you through the process of complex transactions to avoid paying thousands of dollars to the IRS.
Why Choose Us?
You will get a live person on the line when you call us. We handle all emailed questions in less than 24 hours. Customer service is why people choose 1031 Pros over everyone else!
1031 Exchanges are all we do - we pride ourselves in being the industry experts
We Use a Unique, FDIC Insured Individual Account for Each Customer
Full Transparency on Every Exchange
Each Transaction Is Secured With Dual Signature Requirements
We are Fully Bonded and Insured and a member of the FEA
How to Start Your 1031 Exchange
It’s important to get started right away. You can even acquire the new property before selling, but the transaction must be completed within 180 days o pay capital gains taxes. We make this often-complex process simple:
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Step 1: When contemplating your sale, contact 1031 Pros to help set your exchange up for success
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Step 2: When you enter into a contract to sell, we’ll get the exchange started
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Step 3: On the date of sale, a 45-day identification period to select your new property begins, as does the 180-day timeline
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Step 4: Once you open escrow on the new property, 1031 Pros will help you finalize the exchange
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Step 5: 1031 Pros will provide you with all necessary tax documents to enjoy a fully deferred tax exchange.
Role of a Qualified Intermediary in 1031 Exchanges
A qualified intermediary like 1031 Pros is generally required to complete the transaction – whether it is a simultaneous, deferred, reverse or improvement exchange. With us, you’ll get:
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Service in all 50 states from experienced 1031 exchange experts
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All of the appropriate documents for the escrow or title company, to be signed at the closing of your relinquished property
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A unique, FDIC-insured individual account used for each transaction
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Coordination with your title company and transfer of funds on the close of your replacement property
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Release of exchange funds to a legitimate real estate closing, with the exchanger’s signed release.
Contact us for a free consultation before closing on your relinquished property, to ensure that you do the right type of exchange for your situation.
How to Start Your 1031 Exchange
It’s important to get started right away. You can even acquire the new property before you sell, but the transaction must be completed within 180 days or you have to pay capital gains taxes. We make this often-complex process simple:
-
Step 1: When contemplating your sale, contact 1031 Pros to help set your exchange up for success
-
Step 2: When you enter into a contract to sell, we’ll get the exchange started
-
Step 3: On the date of sale, a 45 day identification period to select your new property begins, as does the 180 day timeline
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Step 4: Once you open escrow on the new property, 1031 Pros will help you finalize the exchange
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Step 5: 1031 Pros will provide you with all necessary tax documents so you can enjoy a fully deferred tax exchange.
Customer Service Like No Other
When you call 1031 Pros, you will get a live person on the line at any time, day or night. We respond to all emailed questions in less than 24 hours. Customer service is the number one reason that investors choose to work with 1031 Pros.
What Does and Does Not Qualify for a 1031 Exchange?
Any type of real property – residential, commercial or industrial – so long as it is held for use in a trade or business or as an investment. Even raw land can be exchanged for improved land with buildings.
Choosing the Right Replacement Property for a Like-Kind Exchange
We’ll help you ensure that properties are a like-kind exchange, prioritize locations with strong rental demand, and evaluate the property’s potential for appreciation. Our process gives you the flexibility to evolve your investment strategy and portfolio.
After your 1031 Exchange
With 1031 Pros, you can expect continuous support and consultation to navigate complex transactions smoothly. We’ll also help you with long-term investment strategies – including access to a network of property managers, real estate companies, and financial experts to maximize your investment opportunities and tools to help you understand every aspect of your 1031 exchange.
Contact Us Today
Whether you're ready to sell today or in the future, we are happy to answer any questions you may have about your real estate portfolio. Reach out to learn how we can help save you money and grow your portfolio.
FAQs
What is considered a "like-kind" property in a 1031 exchange?
A like-kind exchange occurs when you want to sell an asset and acquire a similar one while avoiding capital gains tax. These are heavily monitored by the IRS and require oversight to ensure that no tax penalty is incurred.
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How long do I have to identify a replacement property?
You have 45 days to identify a replacement property for your 1031 exchange.
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What are the tax implications if I miss the 1031 exchange deadline?
If you miss the 180-day deadline, you will be responsible for paying capital gains taxes, as if it were a standard sale of real estate.
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How do I choose a qualified intermediary for my 1031 exchange?
You want your qualified intermediary to be an expert on 1031 exchange regulations and well-connected with property managers, real estate companies, and financial experts. You also want a highly responsive intermediary who is always available when you have a question. At 1031 Pros, we are that intermediary.
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Are there any types of real estate that do not qualify for a 1031 exchange?
To qualify, the property must be a business or investment rather than personal property. Your home does not qualify under Section 1031 of the IRS tax code, nor does property held for sale (such as spec houses, building lots, and flips), stocks including those in a Real Estate Investment Trust, bonds, mortgages, and notes.
How much does a 1031 exchange cost?
Pricing is determined on an individual basis, but at 1031 Pros we offer competitive prices and are willing to match anyone else’s offer.
What Our Clients Say
Send a Message
Whether you're ready to sell today or in the future, we are happy to answer any questions you may have about your real estate portfolio.
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Email, call, or fill out the form below to get in touch. If you already have a property and are ready to start an exchange process now, click here.