1031 Exchange Information

The process of a 1031 Exchange involves several key steps:

1. Sell Your Property: Begin by selling your current investment property.
2. Identify a Replacement Property: Within 45 days of the sale, you must identify one or more potential replacement properties. These properties must meet the “like-kind” requirement, meaning they should be similar in nature or purpose.
3. Reinvest Proceeds: Use all proceeds from the sale to purchase the replacement property. To fully defer capital gains taxes, the replacement property must be of equal or greater value.
4. Complete the Exchange: The transaction must be completed within 180 days of the sale of the original property.

While the 1031 Exchange offers significant benefits, there are strict rules to follow:

• Like-Kind Property: The exchange must involve investment or business properties, not personal residences.
• Qualified Intermediary: A neutral third party, known as a qualified intermediary, must handle the transaction.
• Timeframes: Adhering to the 45-day identification period and the 180-day closing period is critical.

Failing to meet these requirements could disqualify the exchange and result in capital gains taxes being due. Blackstone Williams Realty works with trusted partners, including qualified intermediaries, to help you meet these requirements efficiently.

• Tax Deferral: The most significant advantage is the ability to defer capital gains taxes, freeing up more capital for reinvestment.
• Portfolio Growth: Use the exchange to upgrade to larger or more profitable properties.
• Diversification: Investors can leverage the exchange to diversify their portfolio across different property types or geographic locations.
• Wealth Preservation: By deferring taxes, you preserve more of your investment gains for future opportunities.

• Upgrading from a small rental property to a multi-family complex.
• Transitioning from residential properties to commercial real estate.
• Diversifying investments into different markets or asset classes.

The 1031 Exchange process can be complex, but Blackstone Williams Realty has decades of experience in real estate transactions and investment strategies. Our team has built strong relationships with property owners, brokers, and managers, giving our clients access to premier opportunities for like-kind property exchanges.

We’ll work closely with you and your advisors to identify the best replacement properties, structure the exchange to meet your needs, and ensure compliance with all applicable rules and regulations.