IRC 1031 Exchange Explained

Internal Revenue Code provides that no gain or loss shall be recognized on the exchange of rental property is held for productive use in a trade or business, or for investment. A tax-deferred exchange is a method by which a property owners trades one or more relinquished rental properties for one or more replacement rental properties of like-kind. Such an exchange allows the issuer to defer the payment of federal income taxes and some state taxes on the transaction.

The theory behind internal revenue code is to allow the property owners to reinvest the sale proceeds into another rental property, foregoing any economic gains that may have been realized from the sale. If you have recently sold, or are thinking of selling rental property, we can assist in matching you with a qualified IRC 1031 realtor. An IRC 1031 realtor can help you explore your IRC 1031 exchange options. Contact us today for a free consultation.

Benefits of a IRC 1031 Exchange

Benefits to an IRC 1031 exchange include:

IRC 1031 Exchange Benefits

Deferred capital gains taxes

IRC 1031 Exchange Benefits

The potential to yield more cash flow on an annual basis

IRC 1031 Exchange Benefits

More money to reinvest in a newer rental property due to zero capital gains taxes calculated on the old rental property

Consolidate your investment portfolio by electing a tenants in common exchange

IRC 1031 Exchange Benefits

Achieve your investment goalsThe benefits of investing in a tenants in common structured rental property are definitely worth investigating. You have the ability to:

Invest in larger, institutional grade properties.

Diversify Your rental property Portfolio

Tenants In Common Benefits

Diversify across different types and sizes of rental propertys as well as geographic markets, potentially increasing both the value and safety of your rental propertys.

Completing an IRC 1031 exchange with a tenants in common interest ownership in a rental property allows property owners not only to defer their capital gains taxes, but also to upgrade their rental property into larger, institutional-grade rental property.

If you are interested in learning more about tenants in common exchanges available to you, contact us today.

IRC 1031 Properties

In general, the tenants in common opportunities we offer are institutional grade rental properties. Such rental properties often have tenants subject to long term leases with major credit tenants.

Rental Properties are in various locations throughout the U. S. and include office, retail, industrial and multi-family rental property types.

The demand for high quality tenants in common rental property is so strong that the offering period is often quite short. If you have any questions regarding your particular needs and circumstances, contact us.