A Powerful Tax-Deferral Strategy for Real Estate Owners

A 1031 Exchange allows real estate investors to sell an investment property and defer capital gains taxes by reinvesting the proceeds into another qualifying property.

Instead of paying taxes now, you keep more of your equity working for you.Description text goes here

✔ Defer Capital Gains Taxes
Postpone federal (and often state) capital gains taxes when you reinvest properly.

✔ Increase Buying Power
Use tax-deferred dollars to purchase a larger or higher-quality property.

✔ Portfolio Flexibility
Move from management-heavy properties to passive investments, or consolidate/diversify holdings.

✔ Wealth Preservation
Keep more equity invested long-term to build generational wealth.Description text goes here

To qualify, the IRS requires strict deadlines:

📅 45 Days
Identify potential replacement properties after closing the sale.

📅 180 Days
Close on one or more of the identified replacement properties.

⛔ Missing these deadlines can disqualify the exchange.

IEligible Properties:

• Single-family rentals

• Multi-family properties

• Commercial buildings

• Industrial or retail properties

• Land held for investment

Not Eligible:

• Primary residences

• Second homes (with limited exceptions)

• Properties held primarily for resaletem description

A Qualified Intermediary (QI) must be used to:

• Hold sale proceeds

• Facilitate the exchange

• Ensure IRS compliance

⚠️ You cannot touch the funds at any point.

A 1031 Exchange can be a smart strategy—but it’s not one-size-fits-all.
Tax implications, timelines, and investment goals should be reviewed carefully.

📞 Talk with your real estate advisor and tax professional early in the process.