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Navigating Your Options For a Successful 1031 Tax Deferred Exchange

We help you navigate through all your options in a Tax deferred 1031 exchange while showing you how to maximize tax savings that best fit your current financial strategy as well as your long-term investment goal.

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WHAT IS A 1031 TAX DEFFERED EXCHANGE?

The 1031 Tax Deferred Exchange is a popular strategy among real estate investors that allows them to defer capital gains taxes on the sale of an investment property by reinvesting the funds into another like-kind replacement property. For this reason, these exchanges are also referred to as “Like-Kind” exchanges.

Outlined in IRS Code Title 26, Section 1031 (from which the 1031 Tax Deferred Exchange takes its name): The rule states that an exchange of one investment property for another similar property will not be recognized as a gain or loss, provided it is used for business or trade.

There are a few specific requirements related to the handling of the 1031 Tax Deferred Exchange transaction that must be followed. For example, the sale and subsequent purchase must be done through a qualified intermediary, and at no time must the proceeds of the funds come into your hands. Additionally, there are strict deadlines for when the purchase and sale must occur. For more on this, you can review exchange requirements here.

With the 1031 Tax Deferred Exchange, real estate investors have the opportunity to defer capital gains taxes (which in some cases can be a significant 30% to 40%) indefinitely if they continue to reinvest the capital back into other like-kind investment properties.

Curious about 1031 Tax Deferred Exchanges? Work with Best 1031 Online today! James Bean is an experienced real estate broker with specialization in investment brokerage and National 1031 Tax Deferred Exchanges. Contact us now!

“I had owned my retail property for nearly 30 years. We were fortunate to have leased it to a National tenant after we had sold our business. With less than 5 years on the lease and me getting close to retirement age, I knew it was time to sell. Not only did James get us more than what we originally thought we would, he also found us two new properties with fifteen-year leases, increased my annual income by more than 20% and made our exchange absolutely seamless.”
L. Reid
“James has been our exclusive broker for more than ten years. Within our partnerships, we have developed and sold commercial investment properties for more than 30 years. In all that time, James is the only broker with whom we have worked with who has always represented us well. His knowledge of the National market is exceptional. When representing us in specialty markets, he takes the necessary time to do what is right for us. James’ integrity, energy & enthusiasm makes him a great business “partner” for his clients.”
C.J. Baecker
“If you think an exchange is hard or scary, you need to call James Bean! His team makes the entire process simple and stress-free!”
J. Thomas
“Considering an exchange? There is no broker more qualified than James Bean. We have used James multiple times throughout the years and would never use anyone else.”
Mr. & Mrs. R. Wooten
“I needed to sell the commercial property that I received as part of my divorce, as I was moving out of state. I had never completed an exchange before, and I knew I needed to in order to save losing 30% or more in capital gains taxes. Fortunate for me, James had been representing my sister for many years and she referred me to him. James took the time to explain the process, along with all the different options available to me and ultimately represented me in six different exchange purchases, all with no management or landlord responsibility, and increased my annual income by more than 30%, making my golden years extremely enjoyable!”
J. Scibona
“It was not easy to find an investment broker with the breadth of skills and talent that James possess. His dedication to the profession is exceptional. I would recommend James for all types of commercial real estate practice without reservation.”
M.J. Moloney
“I depend on James to find investment properties due to his accurate and concise market data. His extensive contacts and relationships make for much smoother transactions than I have ever had the pleasure to complete in my nearly 40 years of commercial real estate investing. I continue to trust James to bring me deals that are in line with our strategy to grow 2 to 3 properties each year.”
P. Tomczyk
"Understanding, patient, knowledgeable, honest, trustworthy and reliable are just a few words I would use to describe James Bean who guided us on our 1031 journey. Making sure the exchange funds are handled properly, recommending advisors, and designating the accommodator. He then was meticulous in showing and explaining our options for replacement properties and the rules that were needed to be followed to ensure the exchange will stand the test of time. It was not a straight line journey but the end goal was far exceeded when we finally closed on all of our replacement properties. We highly recommend James to anyone who needs a guide to assist them on their 1031 journey."
Mr & Mrs K. Burdullis