1031 Exchange: Navigating Your Way to Wealth
We demystify the 1031 exchange—explaining how it works, highlighting its key benefits, and showing you how to use it to grow your real estate portfolio while keeping more of your capital working for you.
Whether you're a seasoned investor or new to the game, understanding the strategic advantages of a 1031 exchange can be a powerful tool for building long-term wealth.
6 Reasons Smart Investors Choose 1031 Exchanges
Build Wealth
Deferring capital gains taxes allows investors to reinvest more capital into higher-value properties, facilitating increased wealth accumulation.
Improve Cash Flow
Investors can exchange properties for those with higher rental income, enhancing their monthly cash flow.
Purchase Power
By deferring taxes, investors can utilize the full sales proceeds to acquire more valuable or additional real estate assets.
Diversify Real Estate Portfolio
A 1031 exchange enables diversification by allowing investors to trade properties in different markets or sectors, reducing risk.
Preservation of Equity
Deferring taxes helps preserve equity from property sales, allowing for reinvestment into new properties without losing capital.
Estate Planning
Properties passed to heirs may receive a step-up in basis, allowing them to avoid capital gains taxes, thus preserving wealth for future generations.
The Many Faces of 1031 Success
Our monthly spotlight of the wide range of people and entities who are using this powerful tax strategy to build wealth.
Agility in Acquisition: How Reverse 1031 Exchanges Secure the Perfect Deal
A reverse 1031 exchange lets you buy replacement property first while deferring capital gains tax—but the structure must exist before you close on the new asset.
The 3 Most Common 1031 Exchange Mistakes That Trigger a Tax Bill
Constructive receipt, title mismatches, and missed 45-day deadlines cause most preventable 1031 exchange failures, turning tax deferrals into immediate bills.
Calculating Your Potential Capital Gains Tax Savings (Step-by-Step)
Calculate your capital gains tax before selling commercial property using an 8-step method that reveals how 1031 exchanges can preserve $150,000+ in equity.
Why the 'DIY' Approach to 1031 Exchanges Puts Your Equity at Risk
Property owners cannot safely self-manage 1031 exchanges because touching sale proceeds triggers constructive receipt, risking up to 40% in taxes on your gain.
What Qualifies as Like-Kind Property? A Simple Checklist for Texas Investors
Real property held for investment qualifies as like-kind regardless of type. Validate replacements using five requirements before your 45-day identification deadline.
From Tax Liability to Wealth Legacy: The Definitive 1031 Exchange Guide for Commercial Investors
Structure a 1031 exchange before closing to defer 20-30% tax burden on gains through strict 45-day identification and 180-day acquisition requirements.