1031 Exchange Explained

Internal Revenue Code provides that no gain or loss shall be recognized on the exchange of investment property is held for productive use in a trade or business, or for investment. A tax-deferred exchange is a method by which an investment property investors trades one or more relinquished investment properties for one or more replacement investment properties of like-kind. Such an exchange allows the issuer to defer the payment of federal income taxes and some state taxes on the transaction.

The theory behind internal revenue code is to allow the investment property investors to reinvest the sale proceeds into another investment property, foregoing any economic gains that may have been realized from the sale. If you have recently sold, or are thinking of selling investment property, we can assist in matching you with a qualified real estate 1031 exchange expert. A real estate 1031 exchange expert can help you explore your 1031 exchange options. Contact us today for a free consultation.

Benefits of a 1031 Exchange

Benefits to a 1031 exchange include:

1031 Exchange Benefits

Deferred capital gains taxes

1031 Exchange Benefits

The potential to yield more cash flow on an annual basis

1031 Exchange Benefits

More money to reinvest in a newer investment property due to zero capital gains taxes calculated on the old investment property

Consolidate your investment portfolio by electing a TIC exchange

1031 Exchange Benefits

Achieve your investment goalsThe benefits of investing in a TIC structured investment property are definitely worth investigating. You have the ability to:

Invest in larger, institutional grade properties.

Diversify Your investment property Portfolio

TIC Benefits

Diversify across different types and sizes of investment propertys as well as geographic markets, potentially increasing both the value and safety of your investment propertys.

Completing a 1031 exchange with a TIC interest ownership in an investment property allows investment property investors not only to defer their capital gains taxes, but also to upgrade their investment property into larger, institutional-grade investment property.

If you are interested in learning more about TIC exchanges available to you, contact us today.

TIC NNN Lease

A more popular alternative to sole NNN lease ownership is an investment in a single NNN lease commercial investment property by multiple investment property investors as individual investment property investors. This type of ownership is otherwise known as a TIC ownership.

NNN Lease-TIC investment properties can be either single tenant NNN lease or multi-tenant NNN lease investment properties, and are commonly converted into such through a master lease. This type of lease is structured in such a way that they lease the investment property back from the investment property investor on a NNN lease basis.



Tic-NNN lease advantages include:

1. Freedom from the hassles of day-to-day management

2. Readily available investment property

3. The opportunity to invest in higher-quality institutional investment properties

4. Assistance with the entire exchange process

5. Flexible investment sizes based on investment property type and location