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.
Understanding 1031 Exchanges
Under Section 1031 of the IRS tax code, if you are a business owner who owns the 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.
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:
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When contemplating your sale, contact 1031 Pros to help set your exchange up for success
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When you enter into a contract to sell, we’ll get the exchange started
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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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Once you open escrow on the new property, 1031 Pros will help you finalize the exchange
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1031 Pros will provide you with all necessary tax documents so you can 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, are to be signed at the closing of your relinquished property.
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A unique, FDIC-insured individual account is 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.
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.