1031 Exchange Information for Sellers

1031 Exchanges allow owners to move laterally or upward deferring capital gains taxes on the sale and recapture of depreciation so they may put that money toward other investments. 1031 Exchanges only apply to investor-owned properties, however IRS rules allow for conversions and partial exchanges. These situations are a bit more complex but between our qualified team of exchange experts and your tax professionals we will navigate the correct path. 

An Exchange May Make Sense if...

  • You’d like to upgrade from a duplex to a triplex, for example. Use a 1031 Exchange when you sell the old property and put the entire proceeds toward the new one.
  • You'd like to downgrade partial exchanges may make sense and limit tax liability.
  • You perceive better opportunities in a commercial property than what you’re now realizing from one of your residential rentals, for example. 
  • You see great leasing potential in a low-priced fixer, but don’t have ready cash for necessary capital improvements. Use a 1031 Exchange to sell an investment property of higher value, purchase the fixer, and apply the difference in “build to suit” improvements.
  • You’re ready to retire from being a busy landlord for your tenants. Use a 1031 Exchange to purchase low-maintenance property that you can pass on to your heirs. 
  • You want to move out-of-state to be closer to your grandchildren, but need to preserve your investment properties for generated income and your heirs. Use a 1031 Exchange to sell those properties and purchase replacements in your new home state.

Fill out the seller information request form below and we will help you determine if this is applies to your situation.

 

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