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1031 Investment Services has assisted clients in purchasing over 23 million square feet of TIC properties in 29 states, including over 14,000 apartment units.  Utilizing this experience, we continuously monitor and perform due diligence on properties from over 70 TIC sponsors.

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1031 Exchanges

A 1031 exchange is a transaction which allows an owner to sell appreciated real estate and buy another often without tax consequence.  It is the most effective strategy to defer taxes on capital gains and depreciation recapture which typically arise from the sale of investment property.  Since 1921, the tax code has allowed that any real estate held for investment or productive use in a trade or business may be exchanged for any other real estate that is held for investment or productive use in a trade or business.  An apartment may be exchanged for an office property, office for retail, raw land for a TIC, etc.

By deferring taxes a 1031 Exchange allows you to reinvest substantially more proceeds in a new property.  The difference in income may be substantial as well.

Section 1031 of the Internal Revenue Code states:

“No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like-kind which is to be held either for productive use in a trade or business or for investment”

Investors can achieve many objectives with 1031 Exchanges, including improved cash flow, eliminating management responsibilities, upgrading quality, greater leverage, and the opportunity to diversify their equity.