IRC §1031 Exchange
Like-kind exchange with a built-in safety net for your capital gains.
What is a 1031 Exchange?
Also known as a like-kind exchange, a 1031 Exchange allows investors to defer paying capital gains taxes on an investment property. This strategy enables real estate investors to leverage their assets to increase and diversify their real estate investment portfolios without the immediate capital gains tax burden.
By adhering to the specific rules and timelines set by the IRS, investors can effectively roll over gains from one property to another, fostering growth and flexibility in their real estate endeavors.
The Problem: Exchange Failures
Many 1031 Exchanges either fail (~20%) or partially fail (~40%) due to either not following the guidelines or timelines or the strict rules governing 1031 Exchanges. This can cost the exchanger hundreds of thousands of dollars in capital gains tax.
Our Solution: The Safety Net
Here at Q-1031 Exchange Solutions, we plan ahead with a 'safety net' option that can defer your capital gains. Our most popular safety net option is the 537 Installment Sale Trust (537 IST). If your exchange fails or partially fails, you have a backup plan already in place.