What is a 1031 Exchange?
A 1031 exchange is a tool allowed under Section 1031 of the U.S. Tax Code that enables investors and businesses to defer paying taxes on capital gains when they sell a property, as long as they reinvest the proceeds into a "like-kind" property. To qualify, the properties must be held for business or investment purposes, and there are strict time limits to identify and close on a new property within 45 and 180 days, respectively.
Sunwest 1031 Exchange
Your Qualified Intermediary for Like-Kind Real Estate Exchanges
How Do I Get Started?
In a Simple, Easy-To-Understand Way?
Understand IRS Section 1031 regulations: Know that a Qualified Intermediary (QI) is necessary as an impartial third party.
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Select a Qualified Intermediary (QI): Choose a QI to handle the exchange and hold funds from the sale of the relinquished property for the purchase of the replacement property.
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Documentation preparation: The QI creates all essential documentation required by the IRS for tax purposes.
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Collaboration with professionals: Sunwest 1031 collaborates with your financial advisor, CPA, or lawyer, along with the title officer assigned to your closing.
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Simplified process: Working directly with professionals streamlines the 1031 exchange process for clients.
A 1031 exchange requires following IRS guidelines, including working with a Qualified Intermediary (QI) who acts as a neutral third party. The QI handles the sale funds and prepares all necessary IRS-compliant documentation for the exchange.
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Sunwest 1031 coordinates closely with your financial advisor, CPA, attorney, and title officer to ensure the process is clear and efficient. By collaborating with your existing team, Sunwest 1031 simplifies the experience and helps your exchange move forward smoothly and confidently.
More About 1031 Exchanges
How Does a 1031 Exchange Work?
Defer capital gains tax on all your real estate investments with 1031 exchanges.
With a 1031 like-kind exchange, you can sell investment property and reinvest your proceeds without paying immediate capital gains taxes.
It’s a smart, IRS-approved strategy that helps you grow your real estate portfolio, preserve equity, and build long-term wealth through tax-deferred investing.
That could be up to 20% of your profits EACH TIME you sell a property.
Sunwest 1031 Exchange is a national managed facilitator for Qualified Intermediary (QI) services for Real Estate 1031 tax-deferred exchanges.
Overview
A 1031 Exchange lets you sell an investment property and reinvest the proceeds into another, deferring capital gains taxes and keeping more of your money working for you. Sunwest 1031 helps investors navigate every step of the process, ensuring your exchange is IRS-compliant, seamless, and stress-free.
Examples of Like-Kind Properties
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A like-kind exchange simply means exchanging real estate for other real estate of a similar nature or use, it doesn’t have to be the same type of property.
Here are a few common examples:
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Single-family home → Duplex
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Vacant land → Single-family home
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Duplex → Apartment complex
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Apartment complex → Commercial property
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And many other real estate combinations
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With a 1031 Exchange, the key is that both properties are held for investment or business purposes, allowing you to defer capital gains taxes while continuing to build your portfolio.
Who Can Take
Advantage Of It?
Anyone that owns an investment property
What Are Specific Benefits?
A 1031 like-kind exchange could save you up to 25% of your profit that normally go to taxes. Instead, you can use that extra money to purchase a more valuable property.