Whenever you sell an investment property and you have a gain, you generally have to pay tax on the gain at the time of sale. IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free. Section 1031 does not apply to the exchange of securities.
Additional Benefits
- Can relieve the burden of active real estate ownership
- Obtain ownership in commercial property leased by large corporate tenants and/or multi-family residential properties throughout the U.S.
- Diversify your real estate portfolio by geography and sector
- Flexibility to invest in one or multiple offerings
- Helps facilitate Estate Planning and Wealth Transfer
* Securitized 1031 Investments are for approved accredited investors only. Please contact Christopher Riel for more information.
** Christopher Riel and/or David White & Associates does not provide tax advice. Please contact your tax professional to discuss 1031 exchanges and the tax implications of such transactions.
