1031 Like-Kind Exchange
Defer capital gains taxes, preserve investment equity, and grow your real estate portfolio by reinvesting into qualifying properties.
Power of Reinvestment
Keep your capital working to accelerate long-term growth.
What is a 1031 Exchange?
A 1031 exchange, named after Section 1031 of the IRS Code, allows investors to sell a property and reinvest proceeds into another "like-kind" property while deferring capital gains taxes.
Why Use 1031 Exchanges?
Tax Deferral
Postpone federal and state capital gains taxes when reinvesting into qualifying properties.
Portfolio Growth
Use tax dollars to acquire larger or higher-performing properties.
Diversification
Exchange one asset for multiple properties or diversify across sectors.
Estate Planning
Heirs receive stepped-up basis, potentially eliminating deferred taxes.
Power of Reinvestment
Without a 1031 Exchange:
$1M property
- $200K+ in taxes
= $800K to reinvest
With a 1031 Exchange:
$1M to reinvest
+ 25% more capital
Compound growth accelerates over time
The 1031 Exchange Timeline
Follow these critical timelines to ensure a compliant exchange
Sell Property
Sell your investment property using a Qualified Intermediary (QI) who holds the proceeds in escrow.
45-Day Identification
Within 45 days of closing, identify up to 3 replacement properties in writing with your QI.
180-Day Completion
Close on your replacement property within 180 days of the original sale date.
Key Rules for Success
Ensure compliance with IRS requirements
Like-Kind Property
Both properties must be held for investment or business purposes. Real estate to real estate exchanges are safest.
Qualified Intermediary
An independent, unrelated intermediary must hold proceeds. You cannot touch the funds directly.
Equal or Greater Value
Replacement properties must equal or exceed the sale price. Defer all proceeds or risk tax consequences.
Ready to Start Your 1031 Exchange?
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