1031 Exchange Basics Every Investor Should Know

What Is a 1031 Exchange?

What Is a 1031 Exchange?

A 1031 Exchange lets real estate investors defer capital gains taxes by reinvesting sale profits into another like-kind property. It’s an IRS-approved way to grow your portfolio tax-efficiently.

The Main Benefit

The Main Benefit

Defer capital gains taxes legally

Reinvest full profits into new property

Keep more money working for you

Grow your real estate portfolio faster

Key Rules to Follow

Key Rules to Follow

Both properties must be for investment or business use

The exchange must close within 180 days

You must identify the new property within 45 days

Common Mistakes to Avoid

Common Mistakes to Avoid

Missing the 45- or 180-day deadlines

Not using a qualified intermediary

Taking control of sale proceeds directly

Choosing non–like-kind properties

When to Consider a 1031 Exchange

When to Consider a 1031 Exchange

Upgrading to larger properties

Avoiding capital gains taxes while reinvesting

Relocating your real estate assets

Diversifying your investment portfolio

Key Takeaways for Investors

Key Takeaways for Investors

A 1031 Exchange helps investors build wealth while deferring taxes. With Alt Financial’s expert guidance, you can meet deadlines, follow the rules, and ensure smooth, compliant transactions every time.