1031 Exchange Services

Property held for investmet purposes can be “exchanged” for other “like-kind” property under the IRS’ code Section 1031 providing a tax deferral of the gain on the investment. Numerous tax advantages result from well-crafted strategies utilizing 1031 exchange rules.

For additional information, see the IRS Fact Sheet – Like-Kind Exchanges Under IRC Section 1031

The downleg is the property being sold at the start of a 1031 exchange – the first transaction.

The upleg is the replacement property/property being purchased – the second transaction.

Think about why you’re considering a 1031 exchange:

• Changing financial objectives
• Management effort
• Governmental/political risk owning in a specific city/state

A 1031 exchange is an endeavor with its own risk. Primarily, there is no guaranty that a suitable replacement property will be located resulting in the payment of capital gains taxes. Other options with less risk like a refinance or hiring an asset manager may accomplish the same goals. 

By reflecting on the reasons driving the consideration, you’ll be more confident with your decision once it has been made.

Reach out to us through the contact form or by emailing dan@cortorealty.com. We’re happy to discuss your position on an introductory call free of charge.

None…but don’t be discouraged!

We reduce the transaction risk and increase the chances of finding the best replacement property by being active in the market. Our team is constantly underwriting properties keeping a pulse on various markets, so when we need to execute an exchange, we have the groundwork laid out.

We place client service above all else. We track our hours to give our clients the flexibility to avoid being locked into an acquisition fee regardless of the outcome. If you find a property that fits your needs, we’ll pause our efforts and send an invoice that won’t be due until the upleg closes escrow.