Like-Kind Exchange was developed with one goal in mind: To better serve our clients.
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The Benefit
Deferring taxes can be a powerful tool in building wealth. In simple terms, a 1031 exchange is like a tax strategy for real estate. It lets you sell a property and buy another similar one, but without immediately paying taxes on the profit you made from the sale. It is a way to defer those taxes and potentially grow your investment.
What is a 1031 exchange?
A Section 1031 exchange, also known as a like-kind exchange, is a provision in the U.S. tax code that allows a real estate investor to defer capital gains taxes when they sell a property and reinvest the proceeds into another like-kind property. There is no specific minimum or maximum value for a property to qualify for a 1031 exchange.
Helpful Information
Like-Kind Property
01
The property being sold, and the property being acquired must be of like-kind, which generally means they are of the same nature or character, but not necessarily the same quality or grade.
Identification Period
02
The investor must identify potential replacement properties within 45 days of selling the relinquished property.
Closing Period
03
The investor must complete the acquisition of the replacement property (or properties) within 180 days after the sale of the relinquished property.