Save on Capital Gains Tax – 1031 Exchanges


January 31, 2019

Grant Dean

1031 exchanges are a great option for investors to use when they don’t want the expense of Capital Gains tax on the sale of an investment property. Key points are: 1) The property/s you plan to buy with the proceeds from the sale of your investment must also be for investment purposes only 2) The buyer must have a Qualified Intermediary like the company IPX 1031 for example, hold the money to be used on next purchase. The buyer cannot have access to their funds or take receipt of the proceeds 3) The buyer has 45 days from the day of closing to identify the property or properties they would like to buy, up to three total is most common 4) The buyer MUST close on the new investment/s within 180 days of the sale of the original property 5) If a property cannot be closed on in time, as a back up the buyer can invest into a DST (Delaware Statutory Trust – professionally managed REIT) as their property of choice and avoid Capital Gains. #1031 #Realestate #REIT