1031 Exchange Overview

1031 Exchange Overview

If you are buying, selling a home or an investor then you no doubt have heard of a 1031 exchange. I have had friends come up to me and say "Alex, I keep hearing this term 1031 exchange, but what in the world is it?"  Simply put, it is a way for you to make a "like kind" exchange and not pay taxes on the sale of your property be it personal or real, to the IRS.  In the housing market this means you can sell one home and buy another without paying a penalty on capital gains.  You have approximately 45 days from the date of sale of your old home to identify a new one for purchase and a total of 180 days for the sale to finalize in order to meet the guidelines of the 1031 exchange.  If this is something that you are considering as part of your investment strategy in real estate, I would advise you speak with your tax accountant to ensure you are following all of the tax codes and reinvesting properly.  There are always caveats to every code such as the property bought with the proceeds of the sale of the old must be of equal to or greater value.  These are areas you may want to discuss with your tax accountant or attorney to ensure you are investing in a way that is correct for you and your family.   I found that WIkipedia has a nice breakdown of the code should you want further detail.  Real estate can be a great investment strategy if done right, so ensure you are up on all of the codes, especially the 1031 exchange when you are thinking of buying or selling your home!


Solutions Real Estate Headshot
Phone: 858-342-9953
Dated: March 21st 2016
Views: 616
About Solutions: ...

Property Search

RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Happy Labor Day - Labor Day is upon us, and I just
Open House Today - Stop by 2605 Wilson St. Carlsbad
SoCal Home Prices Up From March 2016 To 2017 - Home prices are rising and so
Carlsbad CA 2016 Housing Market Overview - Here's a housing market update for

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Solutions Real Estate
2055 Corte Del Nogal
Carlsbad, CA