Why Consider A 1031 Tax Exchange?

Graham W. Parham • January 14, 2023

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When you are selling an investment property can be subject to taxation. Those taxes can add up quickly depending on the type of property, how long it was owned, state taxes, capital gains, depreciation and the owner’s tax bracket. As a property seller, you may be liable for taxes that add up to 40% or more. As a investment property owner, the 1031 Exchange is a powerful investment tool.

A 1031 Exchange gives the Exchanger the ability to keep all of the property’s equity for re-investment, allowing the Exchanger the opportunity to acquire a replacement property with better cash flow, less management, a more desirable location and other such investment goals.

We believe it is important for our investors to understand the process they are about to go through before they actually begin. For this reason, we talk about a series of exchange basics on this Webinar.

A 1031 Exchange is an IRS-authorized process where like-kind business or investment property is exchanged without immediate tax liability to the property owner (Exchanger).

The IRS requires a neutral third party, known as a facilitator, qualified intermediary (QI) or accommodator to be used for facilitating the 1031 Exchange. Equity Advantage is a qualified intermediary in facilitating 1031 Exchanges.

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