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1031 Tax Exchange Explained

Internal Revenue Code provides that no gain or loss shall be recognized on the exchange of investment property is held for productive use in a trade or business, or for investment. A tax-deferred exchange is a method by which an investment property investors trades one or more relinquished investment properties for one or more replacement investment properties of like-kind. Such an exchange allows the issuer to defer the payment of federal income taxes and some state taxes on the transaction.

The theory behind internal revenue code is to allow the investment property investors to reinvest the sale proceeds into another investment property, foregoing any economic gains that may have been realized from the sale. If you have recently sold, or are thinking of selling investment property, we can assist in matching you with a qualified tax 1031 advisor. A tax 1031 advisor can help you explore your 1031 tax exchange options. Contact us today for a free consultation.

Benefits of a 1031 Tax Exchange

Benefits to a 1031 tax exchange include:

1031 Tax Exchange Benefits
  • Deferred capital gains taxes

    1031 Tax Exchange Benefits
  • The potential to yield more cash flow on an annual basis

    1031 Tax Exchange Benefits
  • More money to reinvest in a newer investment property due to zero capital gains taxes calculated on the old investment property

  • Consolidate your investment portfolio by electing a TIC exchange

    1031 Tax Exchange Benefits
  • Achieve your investment goals

    Find A Tax 1031 Advisor

    Very often 1031 tax exchanges can be riddled with a myriad of potential tax and legal pitfalls. For this reason, it is strongly suggested that each investment property investor elect a licensed tax 1031 advisor to oversee their transaction. This tax 1031 advisor (read registered representative) will be able to facilitate the exchange in a timely manner while watching out for the investment property investor's best interests and investment objectives.

    A tax 1031 advisor will work with you throughout the exchange process to do all of the following:

    1. Develop your investment strategy
    2. Determine viable like kind replacement investment property for the exchange
    3. Answer any questions you may have regarding the exchange process
    4. Manage the exchange from start to finish

    1031 Investment Properties

    In general, the TIC opportunities we offer are institutional grade investment properties. Such investment properties often have tenants subject to long term leases with major credit tenants.

    Investment Properties are in various locations throughout the U. S. and include office, retail, industrial and multi-family investment property types.

    The demand for high quality TIC investment property is so strong that the offering period is often quite short. If you have any questions regarding your particular needs and circumstances, contact us.