Use this list to identify which 1031 Exchange type best fits your real estate investment portfolio and strategy.
Leverage the “Cash Boot” from your 1031 Exchange in order to use the 1031 Exchange as an opportunity for partial portfolio liquidation.
Use your newly acquired exchange property as a personal residence in certain cases — while subject to IRS rules and regulations, personal-use exchange properties can offer owners options for residential and financial mobility that many investors overlook.
Convert existing equity from a poorly performing investment property into a income-generating equity in a higher-earning property and pay nothing in taxes with a 1031 Exchange.
Use a “Triple Net Lease” to rent your building to companies (your tenants) who are responsible for the repairs, insurance and property tax payments, and will sometimes even offer rent guarantees for up to 15 years.
Because the 1031 Exchange rules permit owners to use the property part of the year, exchangers can have a cash-flowing, appreciating investment that also serves as their semi-permanent vacation property.
Learn how to use a Reverse 1031 Exchange (buy first, sell later) to avoid losing 35% of your profit to taxes.
Learn how to leverage an improvement exchange (using exchange funds for new constructions, additions, or upgrades) to increase the value of your real estate investment portfolio.
Learn how a 1031 Exchange protects your assets and fortifies the security of your real estate investment holdings.
By following these steps, investors will achieve a successful 1031 Exchange, paying no money on reinvested funds and no money out of pocket for those who leverage Plenti’s financing options.
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Plenti Financial™ is a trade name of 1031 Exchange Advantage®. 1031 Exchange Advantage™ is a trade name of 1031 EA, LLC and is not a licensed broker. 1031 EA, LLC is a division of Plenti Financial and is the accommodator for a 1031 Exchange as required by the IRS. 1031 EA, LLC does not provide, brokerage, legal or accounting services and is simply a Qualified Intermediary under the IRS code. It therefore is not providing any services other than accommodation services and clients and prospects are advised to confirm all tax, legal, accounting and real estate investment decisions with their professionals such as their accountant or attorney.
A 1031 exchange is a method of tax deferral upon the sale of investment real estate. However, the decision to pay or not pay accumulated and/or deferred taxes is up to the taxpayer, who has control over whether transactions are completed tax-deferred, or tax-free! If an exchanger should decide to continue exchanging into investment property of same or greater value for life, and never sell investment property without utilizing a 1031 exchange, no taxes would be due on any transactions, making them tax-free! Even in the event the taxpayer dies, the taxes die with him, again making the transactions tax-free! Because the choice is up to the taxpayer, we like to say taxes in an exchange are deferred, unless you choose to sell tax-free with Plenti Financial!
