Defer the tax. Keep the capital working.
A 1031 exchange lets you sell an investment property and reinvest the full proceeds into another one without paying capital gains tax at the time of sale.
What a 1031 exchange actually does
The deferral is the whole point
Tax you don't pay today stays invested in the next property. Over several exchanges that compounding is the difference between a modest portfolio and a serious one.
It is not a loophole
Section 1031 has been in the tax code since 1921. The rules are strict, but they are rules — not gray area.
Real property only
Since the 2017 tax law, 1031 applies to real property held for investment or for productive use in a trade or business. Your primary residence does not qualify.
Three steps, and we carry most of them
Call before you close
We confirm an exchange fits, map the deadlines against your timeline, and put the exchange agreement in place before the sale closes.
We hold the proceeds
Funds go from the closing table to us, never to you. That is what keeps the deferral intact.
You buy, we close it out
You identify and negotiate the replacement property. We handle the documentation, the funding and the reporting trail.
1031 Specialists
Most investors first hear about 1031 exchanges from a broker in the middle of a deal, which is the worst time to learn the rules. The mechanics are not complicated, but the deadlines are unforgiving and the money has to move in a specific way. That is what a qualified intermediary is for.
We are a qualified intermediary for IRC Section 1031 tax-deferred exchanges, facilitating exchanges for real estate investors in all fifty states. We handle the exchange agreement, the identification and closing deadlines, and the custody of exchange funds. Every exchange includes unlimited tax optimization consulting, audit protection and an attorney guarantee, on a simple flat fee you pay at close.
What a 1031 exchange actually does, answered
Is a 1031 exchange a tax loophole?
No. Section 1031 has been part of the Internal Revenue Code since 1921 and is used routinely by investors of every size. The rules are strict and the deadlines are hard, but there is nothing gray about it.
Do I ever pay the tax?
You pay when you eventually sell without exchanging. Many investors keep deferring across multiple properties over a career. What happens at the end depends on your estate planning, which is a conversation for your tax advisor.
Can I exchange my home?
Not a primary residence. Section 1031 covers property held for investment or productive use in a trade or business. A former residence that became a rental is a more complicated question worth asking about.
Talk to someone before the clock starts
Reach me directly, or call the main line and ask for anyone on the exchange team.
Main line
(631) 438-1031General email
info@1031specialists.comMailing address
30262 Crown Valley Pkwy, Suite B 464Laguna Niguel, CA 92677
The information on this page is general in nature and is not tax or legal advice. 1031 Specialists is a qualified intermediary, not a law firm, accounting firm or investment adviser. Consult your own tax and legal advisors about your circumstances before entering into an exchange.