The News GodThe News GodThe News God
  • Politics
    • Trump
  • News
    • Wars & Conflicts
  • Business & Finance
  • Lifestyle & Health
  • Law
  • Sports
  • Tech & Autos
  • Home & Garden
  • Videos
  • More
    • Travel & Tour
    • Education
    • Entertainment
      • Biography
      • Net Worth
      • Famous Birthdays
    • General
    • Pets
    • Blog
    • About Us
    • Disclaimer
    • Media Partners
    • Why You Need to Read Business News Everyday
    • Authors
    • Terms of Service & Privacy Policy
Reading: 1031 Exchange: An Investor’s Tip to Build Wealth in Real Estate
Share
Font ResizerAa
The News GodThe News God
Font ResizerAa
  • Politics
  • News
  • Business & Finance
  • Lifestyle & Health
  • Law
  • Sports
  • Tech & Autos
  • Home & Garden
  • Videos
  • More
Search
  • Politics
    • Trump
  • News
    • Wars & Conflicts
  • Business & Finance
  • Lifestyle & Health
  • Law
  • Sports
  • Tech & Autos
  • Home & Garden
  • Videos
  • More
    • Travel & Tour
    • Education
    • Entertainment
    • General
    • Pets
    • Blog
    • About Us
    • Disclaimer
    • Media Partners
    • Why You Need to Read Business News Everyday
    • Authors
    • Terms of Service & Privacy Policy
Follow US
  • About Us
  • Authors
  • Advertise
  • Contact Us
  • Disclaimer
  • My Bookmarks
  • Terms of Use & Privacy Policy
  • Media Partners
The News God > Blog > News > 1031 Exchange: An Investor’s Tip to Build Wealth in Real Estate
News

1031 Exchange: An Investor’s Tip to Build Wealth in Real Estate

Rose Tillerson Bankson
Last updated: January 31, 2024 2:48 pm
Rose Tillerson Bankson - Editor
July 8, 2021
Share
4 Min Read
Real estate or property investment. Home mortgage loan rate. Saving money for retirement concept. Coin stack on international banknotes with house model on table. Business growth background
SHARE

The real estate market is climbing fast. Over the last year alone, the average sales price increased by 17%.

Contents
What Is a 1031 Exchange?The Rules of a 1031 ExchangeTake Advantage of a Tax Exchange

That’s great news if you’re an investor. At least, that’s what it seems on the surface. If you want to sell a property, you’ll have to pay capital gains taxes on the profits. You could pay up to 20% of the profit in taxes.

That’s why investors leverage tools to minimize their taxes like a 1031 exchange. It’s legal, and in your case, it’s a smart move.

Are you interested to learn more about 1031 exchanges and how to pay less in capital gains taxes? Keep reading to learn the basics of a 1031 exchange.

Related Posts

Sex for grades
Manasseh Azure Call Out – Fix Kumasi Road Now
The International Court of Justice says failing to protect the planet from climate change could violate international law
Texas airline employee killed after being sucked into Delta Air Lines jet engine.
Prisoner On the Run in New York City; Cops are Looking For Him

What Is a 1031 Exchange?

Section 1031 of the tax code says that an investor or business can defer capital gains taxes when they sell one property and purchase a similar property.

You take the funds from the sale of one property and apply them toward the purchase of another property.

Note that this can’t be applied to residential property owners. You either have to be an investor or a business.

The other important note is that you can defer your taxes. You still have to pay them eventually, when you sell the new property. You could use 1031 exchanges for several properties, but most investors cash out eventually.

You’ll want to view more here for investment resources and other 1031 exchange tips.

The Rules of a 1031 Exchange

A 1031 exchange seems straightforward because you’re dealing with like-for-like properties. It’s not as simple as it seems.

There are a number of rules that you have to abide by in order to qualify for the tax benefits. The first is that you have to use a qualified intermediary to handle the transaction. That’s because if you handle the funds at any point in time, you have to pay capital gains taxes on them.

There is a 1031 exchange time limit. Investors have 45 days from the date of sale to identify a new property and 180 days to close on that property.

The qualified intermediary sends the appropriate paperwork to the IRS at each step. You have to stick to these deadlines. If you’re late, you miss out on the 1031 exchange benefits.

The rules of 1031 exchanges change from time to time. There’s a proposal on the table to limit the availability of 1031 exchanges. One proposal eliminates 1031 exchanges if the capital gains exceed $500,000.

You have to stay up to date on these and other changes to take full advantage of the opportunity.

Take Advantage of a Tax Exchange

A 1031 exchange is a legal tool that you can use to defer your capital gains taxes. There are a number of rules to follow to get the benefits from the tax code. You can use the tax deferment to grow your real estate empire.

Be sure to check out the Business and Finance section of this site for more investment tips!

Here’s why every American should be discussing politics and religion on Thanksgiving.
Mauricio Pochettino speaks on the chance of Ben Chillwell and Armando Broja starting against Brighton in the Carabao Cup.
Fox News Today: Arrest in Jersey City shooting after man’s phone number found in shooter’s pocket
Nebraska mother and daughter accused of unlawful abortion and burying unborn baby.
Biden admin accused of being ‘idle’ while there is genocide and famine in Sudan
Share This Article
Facebook Email Print
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article How Getting Treatment to Get Sober Can Greatly Benefit Your Life
Next Article 5 Ways Hiring Teams Can Improve the Onboarding Process

Latest Publications

Kenya Bus and Train Accident
At Least 4 Killed and Dozen Injured After Train and bus collide in central Kenya
News
August 7, 2025
Kenya Plane Crash
Six killed In Kenya’s Light Aircraft Crash
News
August 7, 2025
Valedictorian’s Mother and Tutor Caught Stealing Exam Papers
Mother and teacher steal exam papers to help student become valedictorian
News
August 5, 2025
World’s Oldest Baby Born from 30-Year-Old Frozen Embryo
World’s oldest baby born from 30-year-old frozen embryo
News
August 4, 2025
Kenyan mental health activist claims to be Elon Musk's eldest son
Kenyan mental health activist claims to be Elon Musk’s eldest son
News
August 7, 2025

Stay Connected

235.3kFollowersLike
69.1kFollowersFollow
11.6kFollowersPin
56.4kFollowersFollow
136kSubscribersSubscribe

You Might also Like

Man Drives Lawn Mower in Bodycam Video to Allegedly Escape Deputy; Accidentally Shoots Himself in Hand
News

Man Drives Lawn Mower in Bodycam Video to Allegedly Escape Deputy; Accidentally Shoots Himself in Hand

November 19, 2024
News

The Secretary of State of Tennessee is charged with DUI

June 19, 2022
Latest News: Some nursing homes are illegally evicting elderly and disabled residents who can’t afford to pay – NBC News
News

Latest News: Some nursing homes are illegally evicting elderly and disabled residents who can’t afford to pay – NBC News

November 29, 2019
Tori
News

Tori Spelling Contemplates Joining OnlyFans to Fund Her Kids’ College Tuition

August 3, 2024
Show More
© 2025 Thenewsgod. All Rights Reserved.
  • About
  • Contact Us
  • Terms of Use & Privacy Policy
  • Disclaimer
  • Authors
  • Media Partners
  • Videos
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?