1031 tax deferred property exchange is a provision that allows investors to defer their capital gains tax. It is available to real estate owners who sell their investment, rental, business, and reinvest the net proceeds in other real estate. Real Estate held for productive use in a trade or business or held for investment purposes are considered “like-kind” properties and will qualify for a 1031 exchange.
Property owners may sell like-kind properties and defer taxes on the sale’s profits by meeting the requirements of Internal Revenue Code (IRC) 1031 exchange. The purpose of the 1031 Exchange is to allow sellers of like-kind property to buy replacement property of like-kind within a specific time period and defer taxes.
Within the first 45 after closing, the seller must identify exchange candidate properties and then close the transaction within 180 calendar days. A seller can identify up to three possible properties for the exchange.
We have investment properties available that have been pre-negotiated with the owners. Therefore, we already have an understanding of the property’s actual operating data, how motivated that seller is and what type of terms they are willing to accept. By completing this pre-negotiation, we can save you time to insure your transaction takes place well within the IRC time lines. We will also locate the most beneficial loan program (up to 80% LTV) and represent you through the qualification process.
Our Exchange Property Highlights
- Properties are ready for you to identify.
- Use of leverage to keep the initial investment low.
- Holding periods of two to three years.
- High internal rates of return.
- Positive cash flows.
- Favorable terms pre-negotiated with sellers.
1031 Frequently Asked Questions
- Q. What is a 1031 Exchange?
- A. We found this article by housecashin.com answers this question in great details.
- Q. What is the exact wording for the IRS 1031 Exchange?
- Q. What type of properties are considered “Like-Kind” properties?
- Q. What are the time line restrictions of a 1031 Exchange?
- Q. Can you do a 1031 Exchange on a TIC agreement?
- Q. Where can I find investment properties to identify for my 1031 Exchange?
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