1031 Exchange Explained

Internal Revenue Code provides that no gain or loss shall be recognized on the exchange of income property is held for productive use in a trade or business, or for investment. A tax-deferred exchange is a method by which a property investors trades one or more relinquished income properties for one or more replacement income properties of like-kind. Such an exchange allows the issuer to defer the payment of federal income taxes and some state taxes on the transaction.

The theory behind internal revenue code is to allow the property investors to reinvest the sale proceeds into another income property, foregoing any economic gains that may have been realized from the sale. If you have recently sold, or are thinking of selling income property, we can assist in matching you with a qualified 1031 expert. A 1031 expert can help you explore your 1031 exchange options. Contact us today for a free consultation.

Benefits of a 1031 Exchange

Benefits to a 1031 exchange include:

1031 Exchange Benefits

Deferred capital gains taxes

1031 Exchange Benefits

The potential to yield more cash flow on an annual basis

1031 Exchange Benefits

More money to reinvest in a newer income property due to zero capital gains taxes calculated on the old income property

Consolidate your investment portfolio by electing a tenants in common exchange

1031 Exchange Benefits

Achieve your investment goalsThe benefits of investing in a tenants in common structured income property are definitely worth investigating. You have the ability to:

Invest in larger, institutional grade properties.

Diversify Your income property Portfolio

Tenants In Common Benefits

Diversify across different types and sizes of income propertys as well as geographic markets, potentially increasing both the value and safety of your income propertys.

Completing a 1031 exchange with a tenants in common interest ownership in an income property allows property investors not only to defer their capital gains taxes, but also to upgrade their income property into larger, institutional-grade income property.

If you are interested in learning more about tenants in common exchanges available to you, contact us today.

Tenants In Common Benefits

The benefits of investing in a tenants in common structured income property are definitely worth investigating. You have the ability to:

Tenants In Common Benefits

Invest in larger, institutional grade income properties

Tenants In Common Benefits

Choose the extent of your investment (invest in larger, institutional-grade income properties or in a single tenant income property )

Tenants In Common Benefits

Diversify your overall portfolio across different types and sizes of income propertys as well as geographic markets.

Access to higher grade income properties

Tenants In Common Benefits

Substantial tax write-offs

Tenants In Common Benefits

Extensive due diligence