 A 1031 exchange, also known as a Starker exchange or a tax-deferred exchange, permits investment property owners to sell a property and defer tax payments by reinvesting the proceeds into a "like-kind" investment property or properties. A 1031 exchange is enabled by Section 1031 in the Internal Revenue Code.
In order to completely defer the payment of tax with your 1031 exchange, among other things, the replacement property must be of equal or greater value and all the equity from the sold investment property must be reinvested in the new investment property or properties.
More importantly, completing a 1031 exchange with a Tenants In Common interest ownership in a property, also known as co-ownership of real estate (CORE), allows investors not only to defer their capital gains taxes, but also an opportunity to trade up to larger, institutional-grade properties.
If you recently sold an investment property or you're considering selling, one of our Replacement Property Specialists® can help you explore your real estate investment options.
Benefits of a 1031 Exchange
A 1031 tax-deferred exchange can offer benefits that may translate into investment savings.
A 1031 exchange enables you to defer capital gains and depreciation recapture taxes. You can also harvest dormant equity at predictable time intervals with a 1031 exchange to maximize the inherent benefits of your real estate investments.
Potentially Increase Cash Flow
The tax dollars saved may be maximized to increase cash flow and overall net worth. The compounding effects of leveraging the equity in investment property over several holding periods can potentially produce higher actual dollar returns, new depreciation schedules to tax shelter cash flow, and accelerate equity accumulation.
Eliminate Day-to-Day Property Management
1031 exchanges structured as Tenants In Common interest ownership provide real estate investors a range of opportunities to meet personal investment objectives. This includes property type and geographic diversification, and, most importantly, the elimination of day-to-day property management obligations.
Why Clients Choose 1031 Exchange Options
 Clients choose 1031 Exchange Options because we:
* Offer highly personalized service
* Provide access to larger, institutional-grade investment property nationwide
* Guide investors through the entire exchange process
If you're involved in the 1031 tax deferred exchange process (also known as a Starker exchange), a qualified Replacement Property Specialist® at 1031 Exchange Options experienced in investment property interests can assist you with selecting the appropriate real estate exchange for your investment portfolio. Through our relationships with carefully selected, national real estate providers, our clients gain access to select institutional-grade investment properties and other real estate investments.
1031 Exchange Options specializes in 1031 exchanges coupled with Tenants In Common replacement real estate property investments. We can guide you through the complexity of the exchange process, assist you with finding a Qualified Intermediary, and help you identify an appropriate replacement property to successfully complete your property exchange.
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