1031 Tax Deferred Exchanges

1031 Tax Deferred Exchanges are a great way to build wealth through real estate.  These exchanges allow people who own investment property to sell or exchange their properties for similar properties, and to defer capital gains taxes each time such an exchange occurs. 

Exchanges are done through an intermediary, and the closing funds are held by the intermediary until you can buy another property.  The intermediary can hold all of your profits from the sale of investment property or part of the proceeds.  The proceeds you keep are taxed and the money the intermediary holds is tax-deferred.

Since rules apply to exchanges, getting expert advice is very important to avoid unwanted tax implications.   These rules involve selecting a replacement property or properties, the time frame required for the selection process, the time frame you must close on the replacement property, and other requirements.  The biggest reason 1031 exchanges fail has to do with the new property selection and closing of the replacement property.  Typically, these are timing issues related to closing dates. 

There are other types of 1031 Exchanges, with additional options available to you.  These include reverse exchanges and construction exchanges.

Resort Brokers handles many 1031 tax deferred exchanges for our clients and we refer you to highly qualified intermediaries.  

Please feel free to contact us with questions concerning a 1031 Exchange.