Homeowners in Texas often look for ways to unlock the value of their property while minimizing capital gains tax exposure. Section 1031 of the Internal Revenue Code provides a powerful tax-deferral strategy for certain real estate transactions—but it has specific rules and limitations. Understanding these nuances is essential for Texas property owners who want to[…] Read More
Category: 1031 Exchange
How to Find Your Cost Basis in Investment Property and Why It Matters in a 1031 Exchange
When you own an investment property, understanding your cost basis is essential. Basis is the starting point for determining your taxable gain, how much depreciation you can take, and what your tax obligations will be when you sell. It also plays a critical role in tax-deferral strategies like a 1031 exchange, where knowing your adjusted[…] Read More
1031 Exchange for Mixed-Use Properties in Brooklyn and Manhattan
Navigating real estate investment opportunities in Brooklyn and Manhattan requires a strategic approach, especially when it comes to minimizing capital gains taxes. One of the most effective tools at your disposal is the 1031 exchange. If you own a mixed-use property—a building that combines both residential and commercial elements—you may qualify to defer capital gains[…] Read More
Can You Defer Capital Gains Tax with a California 1031 Exchange?
For California real estate investors, selling a property that has appreciated in value often comes with the unwelcome burden of capital gains taxes. Fortunately, the Internal Revenue Code offers a valuable tax-deferral strategy known as a 1031 exchange. This legal tool allows investors to defer paying capital gains tax when they reinvest the proceeds from[…] Read More
Can I 1031 Exchange a Florida Vacation Home? What the IRS Says
Florida’s sunny beaches, popular vacation spots, and attractive real estate market make it an ideal place to own a second home. But what happens when you’re ready to sell your Florida vacation home—can you defer capital gains taxes using a 1031 exchange? According to the Internal Revenue Service (IRS), it depends on how you’ve used[…] Read More
Types of Properties That Qualify for a 1031 Exchange in Texas
A 1031 exchange, named after Section 1031 of the Internal Revenue Code, allows real estate investors to defer capital gains taxes by reinvesting the proceeds from the sale of one investment property into another like-kind property. This powerful tax-deferral strategy can support long-term wealth-building, especially in a diverse and fast-growing real estate market like Texas.[…] Read More
Top Cities in Texas for 1031 Exchange Investments: Dallas, Austin, Houston & Beyond
Investors seeking to defer capital gains taxes through a 1031 exchange often look to Texas as a highly favorable market. With no state income tax, a robust economy, and continued population growth, Texas offers a compelling landscape for real estate reinvestment. From major cities like Dallas and Austin to fast-growing suburbs such as Frisco, several regions[…] Read More
How to Use a 1031 Exchange to Grow Your Real Estate Portfolio
Investing in real estate offers numerous opportunities to build long-term wealth, but doing so effectively often requires careful planning and strategy. One tool that savvy investors use to maximize the growth of their real estate portfolio is the 1031 exchange. Named after Section 1031 of the Internal Revenue Code, this mechanism allows investors to defer[…] Read More
Common Mistakes to Avoid During a Reverse 1031 Exchange
A reverse 1031 exchange is a powerful tool that allows investors to acquire a replacement property before selling their relinquished property, deferring capital gains taxes under Section 1031 of the Internal Revenue Code. This strategy offers flexibility and helps investors secure valuable opportunities, especially in competitive real estate markets. However, navigating a reverse 1031 exchange can[…] Read More
How Can a Qualified Intermediary Help Me With a 1031 Reverse Exchange?
Real estate investors seeking to defer capital gains taxes often turn to 1031 exchanges as a strategic solution. While the traditional forward exchange is widely known, the 1031 reverse exchange offers an alternative for those who must acquire a replacement property before selling their existing one. Navigating the complexities of a reverse exchange requires adherence[…] Read More
