What is a 1031 Exchange?
Thanks to IRC Section 1031, a properly structured 1031 exchange allows an investor to sell a property, to reinvest the proceeds in a new property and to defer all capital gain taxes. IRC Section 1031 (a)(1) states
“No gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment, if such real property is exchanged solely for real property of like-kind which is to be held either for productive use in a trade or business or for investment.”
How Does it Work?
- Engage the ExitCA 1031 team to provide opinion of value.
- Lets get your property on the market.
- You must work with a qualified intermediary
- Go under contract to sell existing property as part of a 1031 exchange
- You have 180 days from closing on sale of first property to close on purchase of new property.
- You have 45 days within the 180 day time frame to identify up to 3 possible replacement properties.
- All like kind investment properties qualify with only a few stipulations.
Why Exit 1031?
Our ExitCA 1031 team can unlock your asset potential to leverage or pay cash for out of California deals. Let’s take a look at your real estate investments and discuss increasing returns. VISIT our 1031 Property List link. Our team and RE/MAX Commercial network is Nationwide with over 600 specialty office locations to get it done.
The Exit CA 1031 team can also handle all your Commercial Real Estate needs in California too !