The Power of 1031 Exchanges

Why 1031 exchange?

This strategy and financial tool is all about preserving your gains on direct investments in real estate, and snowballing those tax savings to grow your portfolio larger, faster, and more profitably.

This is a provision of the Internal Revenue Code (IRC) Section 1031. That means there is no ‘fancy footwork’ or trying to sneak around the law. In fact; the IRS expects you to take this MASSIVE TAX BREAK as a real estate investor. It’s built into the tax rates. So by not using a 1031 exchange investors are essentially just voluntarily overpaying the IRS by tens of thousands of dollars each year.

The big deal here is that investors are able to defer taxes on the gains made at the time of selling an investment property.
The Wall Street Journal’s MarketWatch reports that investors should normally expect to pay a rate of 25% on capital gains. So utilizing an exchange on a property you sell for a $1M gain, may be able to save you as much as $250,000 in taxes. That’s just on one transaction.

The goals is normally to defer tax liability to a year or years when your tax rates are much lower, or can be offset by other paper losses. In the meantime investors enjoy compounding gains annually on the extra double digits they are able to invest for themselves versus handing over to the tax man.

Disclaimer: Each individual investor has a unique financial and tax situation. Before making any financial moves it is only smart to consult with appropriately licensed professionals that can give you customized advice and strategies based on your individual circumstances and goals.

VIP Considerations

One of the most important things to consider when it comes to effective tax saving exchanges is the 1031 exchange rules and IRS guidelines on time frames.

Critical 1031 exchange Timelines You Need to Know:

  • You have 45 days after a sale to identify new acquisitions
  • You have 180 days to close on at least some of your identified acquisitions
  • Any improvements to be made, must also be done within the 180 days to qualify for savings
  • This means it is critical for investors to identify multiple potential investment property acquisitions in advance of a sale. You don’t have to buy them all, but you do have to identify the properties you are considering rolling over into.

For more details on selecting properties check out:

The Intelligent Investor’s 1031 Exchange Playbook

The ultimate guide to shedding taxes & supersizing real estate wealth

Already have a pending closing, or just bought a property? Ask us how we can help with Reverse 1031 Exchanges!

Join the many leading real estate professionals, businesses, clubs, financial advisors, and law firms referring their clients to us for help with securing the best 1031 exchange property deals in Dallas.

Contact Us to Find Out How We Can Help Your Clients Now

Discover the Best 1031 Exchange Properties in Dallas, Texas

We’re the reason they say “everything’s bigger in Texas!”

We’ve helped countless investors find big returns on big real estate deals, with big tax savings in the Dallas area.

We’ve literally worked with hundreds of sophisticated investors from all over the country seeking to take advantage of the value, safety, and growth that Dallas, TX property offers. And we’ve delivered big too.

1031 Exchange Calculators

Test drive these free 1031 exchange calculators to see how much you might, save and gain:

1031 Exchange Calculator
1031 Exchange Properties Calculator
1031 Exchange Calculations and Explanations

Is a 1031 Exchange for Me?

If you answer yes to ANY of these then this strategy is for you:
• Do you own investment property or plan to buy some soon?
• Do you plan to sell any properties in the future?
• Would you like to save money on taxes?
• Would you like to see your portfolio, net worth, and passive income grow faster?
**Remember that it is smartest and easiest to set this up BEFORE you actually need to implement it.

How 1031 exchange  Works: The Process

1. Learn what you can about 1031 exchanges
2. Find a Qualified Intermediary and vet 1031 exchange companies
3. Search for new investment properties to acquire
4. Market and sell existing assets
5. Execute contracts properly
6. Complete any desired property improvements
7. Repeat

VIP Considerations

One of the most important things to consider when it comes to effective tax saving exchanges is the 1031 exchange rules and IRS guidelines on time frames.

Critical Timelines You Need to Know:

  • You have 45 days after a sale to identify new acquisitions
  • You have 180 days to close on at least some of your identified acquisitions
  • Any improvements to be made, must also be done within the 180 days to qualify for savings

This means it is critical for investors to identify multiple potential investment property acquisitions in advance of a sale. You don’t have to buy them all, but you do have to identify the properties you are considering rolling over into.

For more details on selecting properties check out:

The Intelligent Investor’s 1031 Exchange Playbook

The ultimate guide to shedding taxes & supersizing real estate wealth

Already have a pending closing, or just bought a property? Ask us how we can help with Reverse 1031 Exchanges!
Refer Your Clients

Join the many leading real estate professionals, businesses, clubs, financial advisors, and law firms referring their clients to us for help with securing the best 1031 exchange property deals in Dallas.

Contact  Us to Find Out How We Can Help Your Clients Now

Discover the Best 1031 Exchange Properties in Dallas, Texas

We’re the reason they say “everything’s bigger in Texas!”

We’ve helped countless investors find big returns on big real estate deals, with big tax savings in the Dallas area.

We’ve literally worked with hundreds of sophisticated investors from all over the country seeking to take advantage of the value, safety, and growth that Dallas, TX property offers. And we’ve delivered big too.

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