Save on taxes. Grow in wealth.

What is a 1031 Exchange?

A 1031 Exchange allows a real estate investor to defer their capital gains taxes upon the sale of a property to apply those gains to new investment property. Simply put, a 1031 exchange is a swap of one investment property for one or more that goes unrecognized for tax purposes. A tax-deferred exchange allows an investor to keep what would have been paid to the government, resulting in more money to invest in new property acquisitions. A 1031 Exchange is a powerful tool to build wealth and a smart resource for savvy real estate investors.

How does a 1031 Exchange Work?

When you are ready to sell a property, 1031 QualEx, as a Qualified Intermediary, works with the closing/escrow agents to get Exchange documents signed and the Exchange properly shown on all closing documents, and to receive funds generated from the sale. We hold those funds until you’re ready to use them to purchase your replacement property(ies). We again work directly with the closing agent on the same short process. The funds that would have otherwise been paid to the IRS in capital gains taxes can be reinvested into larger properties, or more properties, or other strategic moves for your real estate portfolio.

Benefits of a 1031 Exchange

• Defer capital gains
• Can increase cash flow
• Grow wealth
• Consolidate or diversify real estate portfolio
• Acquire more valuable investment property
• Increase purchasing power