Tax Deferred 1031 Exchanges

When you sell an investment property and you have a capital gain, you may owe taxes on that gain. But in certain circumstances, if you re-invest that gain in another investment property, the tax obligation can be deferred until you sell that property.

Defer Taxes Again and Again

If you re-invest those proceeds into another real estate investment property purchase, you may be eligible to defer taxes on the gain(s) again for as long as you continue to buy and sell investment real estate. The section of the IRS Tax Code that sets out the rules for this is Section 1031, so these are called 1031 Exchanges or Tax-Deferred Exchanges.

Strict Rules and Timelines Apply

1031 Exchanges are complicated. But they are a really good way to manage your investment dollars. To successfully complete a 1031 Exchange, you’ll want to be sure to work with a Realtor who is intimately familiar with the process, timelines and requirements. You’ll also need an attorney with experience in 1031 exchanges and a  “qualified intermediary” to handle the funds on your behalf.

We Can Ease Your Mind

If you’re thinking of buying or selling an investment property, call The Surrealtors first. Put our experience in 1031 exchanges to work for you. We are expert at helping people buy and sell their investment real estate with the best possible outcome.

Learn more here:

Like-Kind Exchanges Under IRS Code Section 1031

Realtor.org Field Guide to 1031 Exchanges

Forbes Explains 1031 Exchanges

Examples of a 1031 Exchange “Qualified Intermediary”:

RPM Investments

Asset Preservation

Greater Boston Exchange Company, LLC

Commerce Escrow