1031 Exchange

Frequently Asked Questions

What is a 1031 Exchange?

A 1031 Exchange allows you to defer capital gain taxes when swapping one real estate investment property for another. When you sell your investment property, the proceeds must be held in escrow by a third party and then used to purchase a new property.

This process allows investors to maximize their return on investment and defer taxes.

What are the Advantages of a 1031 Exchange?

The main advantage of a 1031 Exchange is postponing the payment of capital gain taxes and the recapture of depreciation when selling and reinvesting in like-kind investment properties. Providing real estate investors and taxpayers more capital to invest, generate more cash flow from income-producing properties, and rebalance and grow commercial real estate portfolios.

Does my sale qualify for a 1031 Exchange?

Our experienced team will help you through the 1031 exchange process and ensure you get the most out of your investment.

Don’t wait, start taking control of your financial future today!

Call 732-359-2009 to speak one of our specialists.

1031 EXCHANGE STEPS

STEP ONE

Contact Rally Point 1031 Exchange Services team

When contemplating the sale of an investment property, we recommend that you contact our team immediately to help answer any questions you have about doing a 1031 Exchange.

STEP TWO

Enter into a contract and open escrow

When you reach an agreement to sell you investment property and enter into a contract and open escrow, make 1031 Pros your first call to get the 1031 Exchange process started.

STEP THREE

Identification Period

On the actual date of the sale of your relinquished property, the 45 day identification period begins to identify the next property you want to exchange into. Additionally, the 180 day exchange completion timeline begins as well.

STEP FOUR

Finalize Exchange

Once you open escrow on the property you are exchanging into, contact Rally Point 1031 Exchange Services team to help you finalize the exchange.

STEP FIVE

Enjoy a fully tax deferred exchange

Our 1031 Exchange team will provide you the necessary tax documents to file your taxes the following year, so you can enjoy a fully tax deferred exchange.

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