1031 Property Exchange Explained

Irs Section 1031 provides that no gain or loss shall be recognized on the exchange of income property is held for productive use in a trade or business, or for investment. A tax-deferred exchange is a method by which a property investors trades one or more relinquished income properties for one or more replacement income properties of like-kind. Such an exchange allows the issuer to defer the payment of federal income taxes and some state taxes on the transaction.

The theory behind IRS section 1031 is to allow the property investors to reinvest the sale proceeds into another income property, foregoing any economic gains that may have been realized from the sale. If you have recently sold, or are thinking of selling income property, we can assist in matching you with a qualified 1031 property broker. A 1031 property broker can help you explore your 1031 property exchange options. Contact us today for a free consultation.

Benefits of a 1031 Property Exchange

Benefits to a 1031 property exchange include:

1031 Property Exchange Benefits

Deferred capital gains taxes

1031 Property Exchange Benefits

The potential to yield more cash flow on an annual basis

1031 Property Exchange Benefits

More money to reinvest in a newer income property due to zero capital gains taxes calculated on the old income property

Consolidate your investment portfolio by electing a tenants in common exchange

1031 Property Exchange Benefits

Achieve your investment goals

1031 Properties

In general, the tenants in common opportunities we offer are institutional grade income properties. Such income properties often have tenants subject to long term leases with major credit tenants.

Income Properties are in various locations throughout the U. S. and include office, retail, industrial and multi-family income property types.

The demand for high quality tenants in common income property is so strong that the offering period is often quite short. If you have any questions regarding your particular needs and circumstances, contact us.

Tenants In Common Triple Net Lease

A more popular alternative to sole triple net lease ownership is an investment in a single triple net lease commercial income property by multiple property investors as individual property investors. This type of ownership is otherwise known as a tenants in common ownership.

Triple Net Lease-tenants in common income properties can be either single tenant triple net lease or multi-tenant triple net lease income properties, and are commonly converted into such through a master lease. This type of lease is structured in such a way that they lease the income property back from the property investor on a triple net lease basis.



Tenants In Common-triple net lease advantages include:

1. Freedom from the hassles of day-to-day management

2. Readily available income property

3. The opportunity to invest in higher-quality institutional income properties

4. Assistance with the entire exchange process

5. Flexible investment sizes based on income property type and location

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