1031 Exchange Explained Irs Section 1031 provides that no gain or loss shall be recognized on the exchange of rental property is held for productive use in a trade or business, or for investment. A tax-deferred exchange is a method by which a property owners trades one or more relinquished rental properties for one or more replacement rental properties 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 IRS section 1031 is to allow the property owners to reinvest the sale proceeds into another rental property, foregoing any economic gains that may have been realized from the sale. If you have recently sold, or are thinking of selling rental property, we can assist in matching you with a qualified 1031 realtor. A 1031 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 rental property due to zero capital gains taxes calculated on the old rental property Consolidate your investment portfolio by electing a tenants in common exchange 1031 Exchange Benefits Achieve your investment goals 1031 Properties In general, the tenants in common opportunities we offer are institutional grade rental properties. Such rental properties often have tenants subject to long term leases with major credit tenants. Rental Properties are in various locations throughout the U. S. and include office, retail, industrial and multi-family rental property types. The demand for high quality tenants in common rental property is so strong that the offering period is often quite short. If you have any questions regarding your particular needs and circumstances, contact us. Tenants In Common NNN Lease A more popular alternative to sole NNN lease ownership is an investment in a single NNN lease commercial rental property by multiple property owners as individual property owners. This type of ownership is otherwise known as a tenants in common ownership. NNN Lease-tenants in common rental properties can be either single tenant NNN lease or multi-tenant NNN lease rental properties, and are commonly converted into such through a master lease. This type of lease is structured in such a way that they lease the rental property back from the property owner on a NNN lease basis. Tenants In Common-NNN lease advantages include: 1. Freedom from the hassles of day-to-day management 2. Readily available rental property 3. The opportunity to invest in higher-quality institutional rental properties 4. Assistance with the entire exchange process 5. Flexible investment sizes based on rental property type and location