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What is a 1031 Exchange?
The 1031 exchange, as it is commonly known, derives its name from the section of the Internal Revenue Code which explains the use of a tax deferred exchange. Through this code section, a taxpayer is allowed to defer capital gain tax on the sale and subsequent purchase of investment or business property if the transaction is structured correctly with the use of a qualified intermediary.
Who can take advantage of a 1031 exchange and what is the benefit?
Benefits: Leverage, Consolidation/Diversification, Increased Cash Flow/Income, Increased Purchasing Power for Investors. Investors can take advantage of the 1031 tax-deferred exchange to acquire a more valuable investment property. By utilizing the money they would have paid to the IRS in taxes, they can increase their down payment and improve their overall buying power to acquire a more expensive replacement property.
Qualified Intermediary:
For nearly 20 years, Realogy 1031 Services has served as a qualified intermediary during the 1031 exchange process, helping investors to defer capital gains tax on the sale of their business or investment property. I am sharing some information provided by Realogy 1031 Services. Please reach out with any of your 1031 Exchange questions, you have questions, we have answers!
1031 Exchange Basics:
1031 Basic FAQ’s:
If you are considering a 1031 Exchange and would like more information, please contact me and I can provide you with additional resources, help you with the sale and/or purchase of your investment properties and refer you to Realogy 1031 Services representative who can act as your Qualified Intermediary through every step of the process.
Annette Dammeyer, REALTOR
808.747.3686
Annette.Dammeyer@cbrealty.com
SL3535792
