1031 EXCHANGE DEFINED

A 1031 exchange is a tax-free way to transfer funds from one investment property to another. 1031 exchanges are regulated by the IRS and must be reported on your tax return. A successful exchange has multiple limiting factors for properties such as:

  • Type and Use

  • Ownership and Location

  • Time Constraints for:
    Sale
    Identification
    Property Purchase
    Tax Filing

Realized Gains:

The tax applies to profits from the sale of assets above their basis.

How to Calculate Capital Gains?

Calculating Capital Gains:
Sales Price
+ Additional Investment

(Purchase Price)
(Depreciation)
(Expenses of Sale)
(Exchange Fees)

Capital Gains

BENEFITS OF A 1031 EXCHANGE

The benefits of a 1031 exchange are primarily centered around the deferral of capital gains taxes, which can provide several financial advantages for real estate investors:

  • Tax Deferral

  • Keep your capital working for you

  • Upgrade your portfolio

  • Diversify your portfolio

  • No limit on how many times an investor can perform a 1031 exchange.

WHY WORK WITH CONFLUENCE EXCHANGE?

Collaboration
Access to Experts
Streamlined Experience
Holistic Approach

We provide superior 1031 exchange consulting through collaboration with our experts in the title industry, brokerage services, real estate law, and tax law. Allow us to serve you through the confluence of these specialized fields.