What is a Section 1031 Exchange?

Have you found yourself pondering, “What exactly is a 1031 Exchange?” or questioning its benefits and the right timing for utilizing it?

When you sell a rental property, you’re likely faced with capital gains taxes and depreciation recapture, not to mention the possible impact of the Medicare Surcharge, also known as the Obamacare Tax. The 1031 Exchange serves as a strategic financial tool allowing you to defer these taxes. Named after Section 1031 of the U.S. Internal Revenue Code, it primarily involves the exchange of rental or investment properties. By opting for a 1031 Exchange, property owners and investors can accelerate their wealth accumulation by continuously investing their capital rather than diverting funds to pay taxes.

To take advantage of the tax-deferral opportunities under Section 1031, investors must adhere to certain prerequisites, such as reinvesting in property (or properties) of equal or greater value and meeting strict timelines for identifying and closing on replacement properties. Known under various monikers like tax-deferred exchanges, like-kind exchanges, starker exchanges, delayed exchanges, or tax-free exchanges, navigating the intricacies of 1031 Exchanges can be daunting. This is where the expertise of CBC Capital Advisors can make all the difference.

For a comprehensive guide and expert assistance with your 1031 Exchange, reach out to CBC Capital Advisors at (806) 793-0888 or explore our services online at cbccapitaladvisors.com.

For the past 40+ years it has been our honor and pleasure to help clients achieve their investment goals through commercial real estate investing through…

  • Our Exclusive Nationwide Investment Network
  • Off-Market Commercial Real Estate Opportunities – Nationwide
  • and Saving Taxes with 1031 Exchanges

To Learn More, Give CBC Capital Advisors a Call at (806) 793-0888

In addition, you can learn all about our exclusive nationwide investing network and capabilities by watching Rick Canup’s short investment presentation below.