08/3/26

Our branches appreciate your investor and commercial business, too! That’s why we’re highlighting a specific transaction type that can be a powerful tool for investors of all sizes. Yes, we’re talking about Internal Revenue Code section 1031 exchanges.

A 1031 exchange allows property owners to defer capital gains taxes on the sale of an investment property by reinvesting the proceeds into a new property. Instead of writing a check to the IRS when you sell, you can keep that equity working for you.

We can close these “like-kind” transactions through our Qualified Intermediary (QI) partner company, Exchange it 1031.

Note: Investors cannot use their real estate agent, attorney or accountant as their QI. Using the right professionals helps ensure the property identification process runs smoothly, and all funds are correctly handled.

Why choose this type of transaction?

Here are a few reasons real estate investors use 1031 exchanges. As we touched on above, they allow an owner to defer capital gains taxes on the sale of an investment property if the sale’s profit is reinvested in another property within 180 days.

Some other advantages include:

• Grow and diversify your real estate portfolio more efficiently
• Consolidate multiple properties into one, or vice versa
• Build long-term wealth by keeping more money invested in real estate.

Why is this planning so important? Even though you have 180 days to complete the purchase of the “exchanged” property, a target must be identified within 45 days of the first sale.

If you’re ready to know more about this type of move and would like to be connected to one of our QI experts from Exchange it 1031, let your local branch know. We’d love to give you a referral.