1031 Exchange Explained

Internal Revenue Code provides that no gain or loss shall be recognized on the exchange of commercial real estate is held for productive use in a trade or business, or for investment. A tax-deferred exchange is a method by which a real estate investors trades one or more relinquished commercial real estate for one or more replacement commercial real estate of like-kind. Such an exchange allows the issuer to defer the payment of federal income taxes and some state taxes on the transaction.

The theory behind internal revenue code is to allow the real estate investors to reinvest the sale proceeds into another commercial real estate, foregoing any economic gains that may have been realized from the sale. If you have recently sold, or are thinking of selling commercial real estate, we can assist in matching you with a qualified 1031 starker realtor. A 1031 starker realtor can help you explore your 1031 exchange options. Contact us today for a free consultation.

Benefits of a 1031 Exchange

Benefits to a 1031 exchange include:

1031 Exchange Benefits

Deferred capital gains taxes

1031 Exchange Benefits

The potential to yield more cash flow on an annual basis

1031 Exchange Benefits

More money to reinvest in a newer commercial real estate due to zero capital gains taxes calculated on the old commercial real estate

Consolidate your investment portfolio by electing a tenancy in common exchange

1031 Exchange Benefits

Achieve your investment goalsThe benefits of investing in a tenancy in common structured commercial real estate are definitely worth investigating. You have the ability to:

Invest in larger, institutional grade properties.

Diversify Your commercial real estate Portfolio

Tenancy In Common Benefits

Diversify across different types and sizes of commercial real estates as well as geographic markets, potentially increasing both the value and safety of your commercial real estates.

Completing a 1031 exchange with a tenancy in common interest ownership in a commercial real estate allows real estate investors not only to defer their capital gains taxes, but also to upgrade their commercial real estate into larger, institutional-grade commercial real estate.

If you are interested in learning more about tenancy in common exchanges available to you, contact us today.

Tenancy In Common Triple Net

A more popular alternative to sole triple net ownership is an investment in a single triple net commercial commercial real estate by multiple real estate investors as individual real estate investors. This type of ownership is otherwise known as a tenancy in common ownership.

Triple Net-tenancy in common commercial real estate can be either single tenant triple net or multi-tenant triple net commercial real estate, and are commonly converted into such through a master lease. This type of lease is structured in such a way that they lease the commercial real estate back from the real estate investor on a triple net basis.



Tenancy In Common-triple net advantages include:

1. Freedom from the hassles of day-to-day management

2. Readily available commercial real estate

3. The opportunity to invest in higher-quality institutional commercial real estate

4. Assistance with the entire exchange process

5. Flexible investment sizes based on commercial real estate type and location