1031 Exchange Guide (Defer Capital Gains Taxes)

Defer Capital Gains Taxes with a 1031 Exchange

If you own investment property and are considering selling and then buying another property,
then you should know about the 1031 tax-deferred exchange.

In real estate, a 1031 exchange is a swap of one investment property for another that allows capital gains taxes to be deferred.

  • You can reinvest all proceeds from the sale of your investment property and defer paying taxes.
  • Your taxes on capital gains could exceed 20-35% when selling without completing a 1031 Exchange
  • If used correctly, there is no limit on how many times or how frequently you can do 1031 exchanges.

General Rules of a 1031 Exchange

A 1031 exchange gets its name from Section 1031 of the U.S. Internal Revenue Code, which allows you to avoid paying capital gains taxes when you sell an investment property and reinvest the proceeds from the sale within certain time limits in a property or properties of like kind and equal or greater value. In general, any real estate held for investment or business purposes in the US is considered like-kind, and the difference in type, grade, or quality doesn’t matter.

“Sage Real Estate Group and their whole team greatly exceeded all my expectations...."

"For anyone in the market who wants to buy or list and sell their property there is one name I feel comfortable referring and that is Juan Huizar with Sage Real Estate Group. His personable approach and attention to detail is amazing. He is willing to do what it takes to get the right marketing message out to the potential buyers and the same for sellers as well. He helped me with my commercial property lease and tenant agreement and my wife Ana and I could not be happier!"
Vincent A.
“Juan was referred to me by a good friend that focuses on multi-family real estate because we needed help with our current property. Juan gave us great advice on how to proceed and even reached out to his contacts in the city to get us accurate information. I will definitely do business with Sage Real Estate again since he is very thorough and truly cares about his clients.”
Bibi L.
"The Sage Real Estate Team is awesome! They made the process of purchasing my first property extremely smooth and stress-free. We were able close escrow in less than 30 days. My realtor was Juan, he helped me from beginning to end by showing me several listings, submitting the initial offer, negotiating purchase terms, home inspection, and personally handing me the keys at closing. If you are interested in buying or selling real estate, whether it be a condo, a house, or an investment property, Sage Real Estate is your best bet!"
David H.

Ready to move forward with a 1031 exchange? Contact us now to get started.

Scroll to Top