1031 Tax Deferred Exchange

A 1031 Tax Deferred Exchange allows property owners to reinvest proceeds from the sales of real estate into new properties while deferring the payment of capital gains tax.

  • Tax deferral strategy for real estate investors, generally not available with other asset classes

  • potential to defer up to 100% of taxable gain recognized upon sale of real estate asset

  • harness the power of compounding

  • maximizesequity deployed into the replacement properties

  • potential for more upside by avoiding high frictional cost of paying taxes on a current basis

Flowchart illustrating the process of property sale, selection of exchange candidates, and purchase of replacement property with tax benefits.
A timeline with a blue arrow diagram illustrating the process of replacing a property. It spans from Day 0 to Day 180, with key points at Day 45 and Day 180. The first segment indicates a 45-day period to identify the property to replace, and the second segment states that an exchanger must close on the replacement property within 180 days of the sale.