1031 Exchange Explained

IRC Section 1031 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 a property owners 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 IRC section 1031 is to allow the property owners 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 TIC advisor. A TIC advisor 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 tenants in common exchange

1031 Exchange Benefits

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

Invest in larger, institutional grade properties.

Diversify Your investment property Portfolio

Tenants In Common 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 tenants in common interest ownership in an investment property allows property owners 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 tenants in common exchanges available to you, contact us today.

Tenants In Common Triple Net Lease

A more popular alternative to sole triple net lease ownership is an investment in a single triple net lease commercial investment property by multiple property owners as individual property owners. This type of ownership is otherwise known as a tenants in common ownership.

Triple Net Lease-tenants in common investment properties can be either single tenant triple net lease or multi-tenant triple net 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 property owner on a triple net lease basis.



Tenants In Common-triple net 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