1031 Exchanges

A 1031 Exchange is when investment property owners sell their property (real estate investments) and reinvest the net proceeds into another real estate related investment. Essentially, you will be deferring the taxes, capital gains, on an investment for a later period in time. A 1031 Exchange must be “apples for apples”.

A 1031 Exchange offers an investor an opportunity to reinvest the federal capital gains that would normally be paid to the IRS. This enables the investor to re-invest that money immediately.

There are several rules and restrictions on how and when to take advantage of a 1031 Exchange. Please consult your tax accountant and real estate broker who specializes in investments to guide you through this process.