1031 Exchange

1031 Exchange Explained

In a 1031 Exchange, Section 1031 of the Internal Revenue code (IRC) allows taxpayers to defer capital gain taxes by exchanging qualified, real or personal property (relinquished property) for qualified "like kind exchange" property (replacement property). The net result is that the exchanger can use 100% of the proceeds from their sale to buy another property without paying the capital gains tax. Property involved in a 1031 tax deferred, like kind exchange must be held for use in a trade or business, income production (rental) or investment purposes. See 1031 Investments, NNN Investments, Triple Net Investments.

1031 Like Kind Exchanges originally began as 1031 Tax Swaps of property between two parties. Over the past decade, the regulations regarding 1031 exchanges have become clearer allowing investors to conduct 1031 Exchanges with more guidance. Today, 1031 tax deferred exchanges are used by major corporations and individual investors as part of their investment strategy.

A 1031 Exchange can potentially provide real estate owners with greater leverage; increased diversification; improved cash flow; increased potential for geographic relocation and potential property consolidation.

As with all real estate investments, there is a degree of risk. TIC Advisors is a real estate advisory firm specializing in 1031 Exchanges & 1031 investments structured for co-ownership. This 1031 Exchange company advises clients on 1031 Exchanges and Tenants in Common (TIC) investing. TIC Advisors has professional relationships with the Sponsors of institutional-grade real estate investment opportunities. Our 1031 Exchange specialists can help you decide which 1031 Exchange Property is right for you. (For more 1031 Exchange details & how we can help, click here 1031 Exchange to learn more.)

1031 Exchange - Types

1031 Simultaneous Exchange

Simultaneous Exchange Agreement occurs when the relinquished (sale) property and the replacement (acquired) property are transferred concurrently.

1031 Delayed Exchange (Starker Exchange)

Delayed 1031 Exchange is the most universal 1031 Exchange. It gives the flexibility to acquire a replacement property or properties. Learn more see 1031 Exchange Real Estate.

1031 Exchanges - Construction - Build-To-Suit, Improvement

The 1031 Exchanger can choose to make repairs or add structural improvements as part of the replacement property. These types of 1031 Exchanges can be complicated as they can alleviate cash-flow and 1031 Exchange residual issues.

Reverse 1031 Exchange

In a Reverse 1031 Exchange the replacement property is acquired before the relinquished property is sold. The newly issued Revenue Procedure (REV. Proc.2000-37) provides a safe harbor for 1031 reverse and 1031 reverse build to suit exchanges entered into on or after September 15, 2000.

LET TICADVISORS.COM MAKE YOUR 1031 EXCHANGE PROCESS STRESS FREE

As with all real estate investments, there is a degree of risk. To help you evaluate all of your options we are able to match your requirements to the top 1031 and TIC experts in the country where they will compete to provide a free, no obligation consultation on your investment needs. In addition to their no cost, no obligation services, you will receive free access to 1031 and TIC properties across the U.S. To get this process started just send us your information in the form located on the right. Within minutes of you filling in your information you will gain access to one of the largest databases of 1031 and Tenant in Common properties in the United States.