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.
Reverse 1031 Timeline: How to Close on the New Asset First
Reverse 1031 exchanges flip the order: buy first, sell later. Your EAT must hold title before closing, with Day 45 and Day 180 deadlines that never extend.
The 45-Day Identification Rule: A Strict Checklist for Developers
Miss the 45-day identification deadline by one day and your 1031 exchange fails completely. Follow this Day 0 to Day 45 checklist to protect your deferral.
Managing the Closing Gap: Coordinating Sale and Purchase Timelines
Coordinate your broker, title company, lender, CPA, and QI before closing to prevent missing Day 45 and Day 180 deadlines that trigger immediate capital gains tax.
The 45-Day Identification Rule Explained: 3 Rules You Must Know
The 45-day identification rule requires written property designation within 45 days of transfer. Miss it by one day, and the entire tax deferral collapses.
What Happens if You Miss the 45-Day Deadline? (And How to Prevent It)
Missing the 45-day deadline fails your 1031 exchange, triggering 30-40% taxation. Prevent this by engaging a QI before listing and hitting Day 30 checkpoints.
Beat the Clock: A Strategic Timeline for a Flawless 1031 Exchange
Missing 1031's 45-day or 180-day deadline means full capital gains tax. Prevent this by setting alerts at Days 30, 40, and 44 and identifying backup properties.