The property you’re selling and the property you acquire must be like-kind. In other words, they must both be held for business use, productive use in trade, or investment.
If you’re selling farmland and purchasing an apartment building, that’s perfectly fine as long as both are held for business.
But if you’re selling raw land to a developer in order to help pay for a vacation home, that doesn’t cut it. The properties are not both held for business, trade or investment purposes, so they differ in kind.
To avoid capital gains taxes, the value of your newly acquired property must be equal to or of greater than the value of the property you’re selling.
Let’s say you’re selling property for $100,000, but the new property you’re buying is only worth $90,000. That leaves you with $10,000, which is called the boot. And the boot is subject to capital gains tax (which can be as high as 35%).
Ownership records for both properties must be in the same name. This can be your personal name, or it can be the name of a pass-through entity, such as an LLC or Delaware Statutory Trust.
1031 exchanges can be used for a wide variety of asset types as long as they are like-kind. In fact, you can use a 1031 exchange to acquire multiple properties or even a portion of a larger real estate investment portfolio. 1031 exchanges are one of the most versatile methods of real estate investing.
During the Great Recession of 2008, real estate investments plummeted. Now, during the ongoing global pandemic, many businesses have been forced to shut their doors, leading to economic volatility, unemployment, and another slowdown in the real estate market.
This has led many to ask: Is real estate still a worthwhile investment?
The answer is emphatically: Yes.
Even now, real estate is less sensitive to the market fluctuations that can drag down stocks, bonds and other investments, making it one of the most stable options on the market.
But what kind of real estate you invest in matters more now than ever.
At 1031Gateway we search tirelessly for the advisors who continue to deliver reliable passive income, who promote widely diversified portfolios and that specialize in the kinds of essential businesses that have remained open through crises like the COVID pandemic: grocery stores, pharmacies, auto-repair shops.
At 1031Gateway, we connect you with a 1031 exchange advisor who will work to understand your financial goals and how to achieve them even through the worst of times.
The advisors in our network are trusted, vetted professionals that bring decades of experience across a wide range of real estate investment processes and structures: 1031 exchanges, 721 exchanges, 1033 exchanges, Delaware Statutory Trusts, REITs, and more.
We know your time is important, which is why we work only with advisors who can contact you within two business days. General turnaround time is less than 24 hours.
Before you relinquish your property, you will need to identify a Qualified Intermediary for your 1031 exchange. You cannot accept payment for the sale yourself, otherwise it counts as a taxable event.
Once you relinquish your property, you're on the clock. Proceeds from the sale must be transferred to your Qualified Intermediary, and you now have 45 days to identify a replacement property (or properties).
Your replacement property must be acquired within 180 days of selling your property.
If you have already sold your property as part of a 1031 exchange, you have only 45 days in which to identify qualified replacement properties. Answer a few simple questions and we will connect you with a 1031 exchange advisor who can help you find the right investment for you before you miss your deadline.
On average, advisors within our network contact investors within two business days. Our trusted advisors have access to diversified DST portfolios, shares of which can be closed on in as few as 1-3 days.
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Our advisor network evaluates thousands of potential investment properties from many of the largest sponsors in the industry.
All properties below are currently closed and are not available for investment.
The offering is a Class B Multifamily property in Fort Myers, Florida. Built in 1988, with a second phase completed in 1997, the property is a m…
The offering will purchase a Class A multifamily complex in Asheville, North Carolina. Developed in 2018, the 312-unit property has high-quality…
This offering from ExchangeRight contains a single Class-B multifamily complex in Douglasville, Georgia. The sponsor intends to finish pre…
The twelve apartment buildings that make up the Bellemeade Farms complex sits on over fifteen acres and makes up over 305,000 rentable Sq. Ft. D…