A 1031 exchange must be reported in the tax year when the original property (relinquished property) was sold—not when the replacement property was acquired. If you completed a 1031 exchange in 2024, you must report it on your 2024 tax return—even if your replacement property was acquired in 2025. Properly completing IRS Form 8824 for like-kind exchanges is essential to ensuring your tax deferral is recognized by the IRS ..read more

Avoid costly mistakes when reporting your 1031 exchange. As tax season approaches, one of the most common and costly mistakes 1031 exchangers make is filing their tax return before their exchange is complete. Doing so can result in unintended tax liability and the loss of valuable tax deferral benefits ..read more

A 1031 exchange is one of the most powerful tools for deferring capital gains taxes, allowing you to reinvest your proceeds into a new property while preserving your investment capital. But to fully maximize your tax deferral, you need to meet specific reinvestment requirements. This means strategically handling value, equity, and debt replacement to avoid unnecessary tax liabilities.  ..read more

As a real estate professional, understanding and leveraging 1031 exchanges can significantly enhance your business. These tax-deferred exchanges not only offer substantial benefits to your clients but also serve as a powerful tool to expand your listings, increase commissions, and establish you as a knowledgeable expert in the field.  ..read more

Sellers are sometimes asked to provide financing to buyers as part of their property sale negotiations. This arrangement, commonly known as seller financing, typically involves payments spread out over several years. Under Section 453 of the Tax Code, this can be reported as an installment sale, allowing sellers to defer the recognition of gains over the life of the note.  ..read more

When the Federal Reserve lowers interest rates, many expect mortgage rates to follow suit. However, recent months have shown a disconnect between these two financial benchmarks. Despite two rate cuts by the Federal Reserve, mortgage interest rates have remained stubbornly high. This divergence leaves homeowners, real estate investors, and financial professionals wondering: why aren’t mortgage rates decreasing? The answer lies in the intricate interplay of inflation, the bond market, and the national debt ..read more

At 1031 CORP., safeguarding and managing your exchange funds with integrity, transparency, and security is our highest priority. Our approach reflects one of our core values: Modeling and Inspiring Stewardship—a commitment to providing secure, reliable service and maintaining the highest ethical standards in every transaction. Here’s how we uphold this value in our daily operations:  ..read more

If a federally declared disaster impacts your 1031 exchange, you may qualify for an extension on the standard 45-Day Identification and 180-Day Exchange Period deadlines. Extensions are not automatic and apply only when the IRS issues a Notice or News Release listing affected areas. Please check the IRS website for updates. Extensions are available for both reverse and delayed exchanges.  ..read more

A 1031 improvement exchange offers savvy investors a unique opportunity to maximize the tax deferral benefits of a standard 1031 exchange while enhancing the value of their replacement property. Exchangers can significantly boost their investment potential by leveraging exchange funds to purchase replacement property and make improvements or new constructions within a designated timeframe ..read more

When it comes to real estate investment, the 1031 exchange is a powerful tool for deferring capital gains taxes. However, understanding how this tax-deferral strategy applies to different types of properties—such as vacation homes, primary residences, and mixed-use properties—can be crucial for investors looking to maximize their benefits ..read more