1031 Exchanges
Defer Taxes. Increase Returns.
Use 1031 exchanges to roll capital from existing properties into new construction projects—preserving equity, deferring taxes, and accelerating your path to financial freedom.
What is a 1031 Exchange?
Named after Section 1031 of the IRS tax code, a 1031 exchange allows real estate investors to defer capital gains taxes when selling an investment property and reinvesting the proceeds into a "like-kind" property.This powerful tax strategy enables you to preserve your full equity and continue building wealth without the drag of taxes on your gains.
Key Benefits
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Defer capital gains taxes indefinitely
Preserve 100% of your equity for reinvestment
Consolidate multiple properties into a single investment
Reset depreciation schedule on new property
Tax-Deferred Growth
By deferring capital gains taxes, you keep 100% of your equity working for you, significantly increasing your long-term wealth building potential.
How a 1031 Exchange Works
The Process
1
Identify a Qualified Intermediary (QI)
Work with a QI to handle the exchange funds—you cannot touch the proceeds directly.
2
Sell Your Property
The QI receives and holds the proceeds from your property sale.
3
Identify Replacement Property
Within 45 days of the sale, identify potential replacement properties.
4
Complete the Purchase
Close on the new property within 180 days of selling your original property.
Critical Timelines
45-Day Identification Window
You must identify potential replacement properties within 45 days of selling your property.
180-Day Closing Window
You must close on your replacement property within 180 days of selling your original property.
Identification Rules
3-Property Rule
Identify up to 3 potential replacement properties, regardless of their market value.
200% Rule
Identify any number of properties as long as their combined value doesn't exceed 200% of the sold property's value.
95% Rule
Identify any number of properties of any value, but you must acquire properties equal to 95% of the total value identified.
