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1031 Exchange Explained

Internal Revenue Code 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 internal revenue code 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 1031 advisor. A 1031 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 TIC exchange

    1031 Exchange Benefits
  • Achieve your investment goals

    1031 Properties

    In general, the TIC opportunities we offer are institutional grade investment properties. Such investment properties often have tenants subject to long term leases with major credit tenants.

    Investment Properties are in various locations throughout the U. S. and include office, retail, industrial and multi-family investment property types.

    The demand for high quality TIC investment property is so strong that the offering period is often quite short. If you have any questions regarding your particular needs and circumstances, contact us.

    TIC 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 TIC ownership.

    Triple Net Lease-TIC 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.



    Tic-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

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