Tax Mitigation
1031 Exchange
Defer capital gains tax on investment real estate.
A 1031 exchange lets real estate investors sell an investment property and reinvest the proceeds into a like-kind property while deferring capital gains tax.
How it works
When you sell qualifying investment real estate and reinvest the full proceeds into another like-kind property within IRS deadlines (45 days to identify, 180 days to close), the capital gains tax is deferred, potentially indefinitely as you continue exchanging.
Benefits & considerations
Potential benefits
- Defer capital gains and depreciation-recapture tax
- Keep more capital working in the next property
- Can be repeated to compound tax deferral
- Supports portfolio growth and consolidation
Considerations
- Strict IRS timelines (45 / 180 days) apply
- Requires a qualified intermediary to hold proceeds
- Applies to investment property, not primary homes
Who it is for
Real estate investors selling appreciated property who want to reinvest without a large tax bill.
Explore 1031 Exchange for your situation
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