1031 Exchanges: Defer Taxes. Build Long-Term Wealth.

The Tax Deferred Exchange, as defined in §1031 of the Internal Revenue Code, offers taxpayers one of the last great opportunities to build wealth and save taxes. By completing an exchange, the Taxpayer (Exchanger) can dispose of investment or business-use assets, acquire Replacement Property, and defer the tax that would ordinarily be due upon the sale.

To fully defer the taxes on capital gain or depreciation recapture, the Exchanger must (a) acquire “like kind” Replacement Property that will be held for investment or used productively in a trade or business, (b) purchase Replacement Property of equal or greater value, (c) reinvest all of the equity into the Replacement Property, and (d) replace the value of the debt on the Replacement Property. Debt may be replaced with additional cash, but cash equity cannot be replaced with additional debt. Additionally, the Exchanger may not receive cash or other benefits from the sale proceeds during the exchange.

Upgrade Strategy
Transition into higher-value or higher-performing assets.

Diversification Strategy
Spread risk across multiple properties or markets.

Geographic Shift
Reallocate capital to growth markets such as the Southeast

Passive Income Strategy
Move into lower-management, income-focused investme