A properly structured 1031 exchange allows a property owner to sell real estate, to reinvest the proceeds in a new property, and to defer capital gains taxes. This allows property owners the ability to apply the earning power of the deferred taxes toward the acquisition of a future property(s). For many years, the 1031 exchange has been widely used by property owners for its tax deferment opportunities. Knowing and understanding the history of the 1031 exchange process may benefit financial professionals and property owners in the event of executing one of these exchanges.

Need to do a Like-Kind Exchange/ 1031?

Imagine this: One of your clients is a property owner of an apartment complex that has been in their portfolio for years. The property has risen from the original price of $8 Million to $100 Million. While you already manage their securities portfolio, they want to know what their options are for making the most of their investment and defer capital gains tax. Everyone wants to sell property for more than they bought it for! That’s where you and the a 1031 exchange come in.