1031 Tax Free Exchanges

A properly structured 1031 exchange allows qualifying real estate investors to defer certain capital gains taxes when exchanging investment or business property for like-kind real estate. Capes Sokol advises investors, developers, and property owners throughout the exchange process, working alongside qualified intermediaries, tax professionals, and lenders to structure transactions, meet statutory deadlines, and help clients achieve their investment objectives while complying with applicable legal requirements.

Frequently Asked Questions

What is a 1031 exchange?

A 1031 exchange allows qualifying investment or business real estate owners to defer certain capital gains taxes by exchanging one investment property for another like-kind property under federal tax law.

What properties qualify for a 1031 exchange?

Generally, investment and business-use real estate qualifies for a 1031 exchange, while personal residences typically do not. The transaction must satisfy specific IRS requirements and deadlines.

Why should I work with a real estate attorney for a 1031 exchange?

A real estate attorney can help structure the transaction, review purchase and sale agreements, coordinate with qualified intermediaries and tax professionals, and ensure the exchange complies with applicable legal requirements.