The Fortitude Difference
With over 100+ years of combined experience facilitating 1031 exchanges, including the largest 1031 exchange utilizing DST’s in our industry, we are your trusted partners in helping you achieve success. We believe that education and service matter, and we are committed to providing our clients with the resources required to facilitate the entire exchange process.
Experience in Section 1031 exchange securitized real estate
Careful due diligence
Full disclosure of all details and parties
The security of bonded, reputable, qualified intermediaries
We Will Help You Easily Find Replacement Property and Correctly Navigate Your Exchange
1. Create an Account
2. Browse Properties
3. Talk to an Expert
Don’t Foul Up Your 1031 Exchange! Download Our Simple to Follow Checklist As Your Guide
In its simplest terms, a 1031 or a 1031 exchange is a swap of one asset for another. Unlike a sale, which is a swap for cash, a 1031 is a ‘”like-kind exchange” which is also known as a Starker. The beauty of these exchanges is that they limit the amount of tax due. This means that under the eyes of the IRS, you will not recognize any capital gains from the transaction. As you can see, this can be a powerful tool to defer taxes as you can roll the gains from one investment into another. This can continue until you sell the final asset.
However, 1031s are not a panacea. Special rules are used to determine eligibility and the entire process needs to be managed to ensure that “depreciation recapture” does not occur. When this happens, gains are taxed as ordinary income at a much higher rate. While this can be avoided, there are situations where it might not apply.