A 1031 Exchange helps commercial real estate investors grow their portfolio while deferring
capital gains taxes.
Under Section 1031 of the Internal Revenue Code, investors can sell an investment property
and reinvest the proceeds into another “like-kind” property without immediately paying taxes on
the profit.
This allows more capital to stay invested and supports long-term wealth building
Key Benefits
- Tax deferral
- Portfolio growth
- Better investment opportunities
- Diversification across property types
- Estate planning advantages
- Important Deadlines
45 Days: Identify replacement properties after the sale.
180 Days: Complete the purchase of the new property.
Missing these deadlines can disqualify the exchange.
- Common Property Types
- Industrial Buildings
- Retail Centers
- Multifamily Properties
- Office Buildings
- Land Investments
- Final Thought
A 1031 Exchange is a smart strategy for investors looking to scale their commercial real estate
portfolio while preserving more capital.
If you are considering selling or exchanging investment property in Los Angeles, feel free to
reach out to discuss market opportunities.
Edgar MatevosianCommercial Real Estate Advisor
DRE02208499
eXp Commercial of California