1031 Exchanges

Section 1031 of the Internal Revenue Code (IRC) allows taxpayers to defer federal, and in most cases, state capital gain and depreciation recapture income taxes by exchanging qualified, real or personal property (relinquished property) for qualified "like-kind" property (replacement property). Property involved in a 1031 tax deferred, like kind exchange must be held for rental (income production), investment or for use in a trade or business.

Delayed Forward 1031 Exchanges

The vast majority of 1031 exchanges are delayed or forward like kind exchanges, sometimes referred to as starker exchanges or tax free exchanges (although it is important to note that these are tax-deferred exchanges and are not tax-free). In a 1031 delayed exchange, there is a lapse of up to 180 calendar days between the time that the taxpayer disposes of his or her relinquished property and acquires his or her replacement property. The Internal Revenue Service (IRS) requires that you strictly adhere to several requirements when completing a 1031 delayed exchange. Taxpayers must not have actual possession or control over their 1031 exchange funds during this period.

Build-To-Suit 1031 Exchanges

Build-To-Suit, construction or improvement, 1031 exchange transactions can be structured as either forward or reverse 1031 exchanges.  An Exchange Accommodation Titleholder can be a component of a build-to-suit exchange. In a build-to-suit exchange, the EAT uses the proceeds from the relinquished property to make capital improvements to a replacement property, build a new property on the client’s behalf or to retrofit a property. 

Real Property 1031 Exchanges

Among the types of real property that are eligible for 1031 exchange treatment are raw land, single family homes, hotels, multifamily dwellings, factories, commercial office buildings, shopping centers, farmland, leases of 30 years or more, quarries and oil fields. In general, any type of real estate may be traded for any other type of real estate.

Request Inventory available:

Fill out the form below with your exchange requirements such as hotels, single family homes, multifamily dwellings, commercial buildings and shopping centers.