“Making your real estate dollars work to their fullest extent.”

Based on the Internal Revenue Code Section 1031, a 1031 Tax Exchange is a tool for deferring capital gains taxes on transactions involving real estate used for trade or business.  The 1031 Tax Deferred Exchange allows a person to defer the capital gains tax on the sale of an investment property by rolling over the proceeds into another investment property. 

To execute a 1031 Exchange properly, the replacement property purchased must be considered of “like kind” and identified within 45 days of closing on the relinquished property.  In order to defer all of the capital gains tax, the replacement property must be of equal or greater value than the property sold.  Taxes will be paid on the amount not exchanged. 

A Qualified Intermediary (QI) must hold the proceeds from the sale of the investment during the entire 1031 Tax Exchange process.  The QI should be selected prior to the sale of the relinquished property and should have years of professional experience.  We can help you locate a QI in your area. 

Our 1031 Tax Exchange professionals work to help our clients find suitable replacement properties.  We work with many property issuers, giving our clients a large selection of Tenant-in-Common (TIC) and Oil & Gas Royalty Programs.  If you would like to learn more about 1031 Exchanges and the services we provide, please contact our office today.