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Short-term rentals like Airbnb and VRBO properties have become some of the most popular investment vehicles in real estate. But many investors don’t realize these properties can also qualify for a 1031 exchange—a powerful strategy that allows you to defer capital gains taxes and grow your portfolio faster. The key is doing it correctly—and that’s where working with an experienced 1031 qualified intermediary becomes critical. Do Airbnb and VRBO Properties Qualify for a 1031 Ex

Few people look forward to the tax season that follows the sale of an investment property. That’s why so many people investigate 1031 exchanges. With this technique, investors can roll the taxes into the basis of the new property. While it works, 1031 exchange alternatives exist. We’ll explain what a 1031 exchange is, and we’ll outline some alternatives that can also help to keep your profits. What Is a 1031 Exchange? A 1031 exchange is a coordinated real estate transaction

A 1031 exchange allows you to roll your tax obligations from one property into another. With this method, you can keep more of your profits in circulation, and hopefully, they’ll continue to grow with time. While you may know how a typical exchange works, we’re about to show you some 1031 exchange examples that turned big profits for investors just like you. What Is a 1031 Exchange? A 1031 exchange is a coordinated transaction involving the sale and purchase of investment pro

The 1031 exchange 200 rule involves the value of your replacement properties. Follow this rule, and you can identify as many properties as you want to. However, their combined total value can’t exceed 200% of the value of your original property. In this article, we’ll explain what the 200% rule is, how it works, and how you can comply. We’ll also outline another way to choose properties that doesn’t involve percentages at all. What Is a 1031 Exchange? A 1031 exchange is a t

Finding and hiring a 1031 exchange accommodator is a critical part of avoiding capital gains taxes. As a real estate professional, you may know that you need one. However, you may be unsure about how to hire one. Look for things like experience, bonding, membership, and proof of continuing education to ensure you’re working with the right person. What Is a 1031 Exchange Accommodator? An exchange accommodator (sometimes called a qualified intermediary) is a required part of yo

A typical 1031 exchange service costs between $500 and $1,500. That fee includes things like setting up the exchange, creating an account, processing paperwork, and holding your money. A 1031 exchange service is an important part of a successful transaction. While it’s important to know what they charge, price shouldn’t be your only consideration when you choose a professional to help. Here’s what you need to know. What Is a 1031 Exchange? A 1031 exchange involves the exch

A typical 1031 exchange involves two properties—one property that is sold and one that is purchased. However, you’re not required to follow this model. A 1031 exchange with multiple properties is possible. You can sell multiple properties to purchase one. You can also sell one asset and purchase multiple others. In this article, we’ll explain how this works. We’ll also outline the risks and benefits of using this option. What Is a 1031 Exchange? The Internal Revenue Service (

In limited situations, you can do a 1031 exchange on a second home or vacation rental. You must prove that you’ve used these properties as investments for the majority of the time. That means you’ll need clear records and plenty of notes. We’ll explain how these delicate transactions work and help you make the best decision for your portfolio. What Is a 1031 Exchange? A 1031 exchange (sometimes called a deferred exchange) is one in which an investor sells one property and b

You can defer capital gains tax on the sale of a commercial property. In fact, thousands of people do this every year. A 1031 exchange involves selling assets and rolling the potential capital gains tax into the basis of assets you buy. We’ll explain what 1031 exchanges are, how they work, and why you might consider one to defer capital gains tax. What Are Capital Gains & How Are They Calculated? Capital gains are taxes assessed when an investor sells an asset and makes a pr

If you’re wondering how to avoid capital gains tax when selling an investment property, you’re not alone. Many investors wonder about how to keep the tax man at bay when it’s time to offload an underperforming asset. Several methods are available, including a 1031 exchange, a conversion, and tax-loss harvesting. We’ll explain how each one works and help you make a smart decision for your portfolio. What Is an Investment Property? It’s important to have a good baseline of info

You have 180 days to complete a 1031 exchange. The first day is the day you sell your property, and the last is the day you complete the transaction on the new one. The IRS is very strict about 1031 exchange deadlines, and they can’t be shifted without potential tax penalties. In this article, we’ll explain the time frames in detail and offer tips to help you complete your transaction on schedule. What Is a 1031 Exchange? A 1031 exchange is a related transaction involving t

Reducing your tax burden is a smart way to save money. Investing in real estate can make this possible. The right properties, when managed in the right way, can reduce the amount you must pay during tax season, and best of all, they can also generate income. Here’s what you need to know about the tax benefits of real estate investing. Is Real Estate a Good Investment? You’ve probably heard the saying that 90% of millionaires grew their wealth via real estate. While that stat

Researchers say that 1031 exchanges generate $27.5 million in labor income for the American economy. As an investor, you only see a small portion of these profits. However, managing 1031 exchange funds is critical. A 1031 exchange is a complex transaction you can’t complete without help. Our team will help to hold and move funds for you, but you have the final say in how the potential profits are distributed. Here’s what you need to know to make smart decisions. What Is a 10

At the end of a successful 1031 exchange, you’ll have a new property in your portfolio. How long do you have to hang onto it? The answer isn’t clearly defined in formal documents created by the Internal Revenue Service (IRS). However, a careful reading of printed pieces can help you understand how long you must wait before you put your new property up for sale. What Is a 1031 Exchange? A 1031 exchange is a coordinated transaction investors use to sell one property and purchas

Investing in real estate often means learning an entirely new vocabulary involving numbers and acronyms. For example, once you start researching a 1031 exchange, you may start hearing about DST investments. A Delaware statutory trust (DST) is an opportunity for fractional ownership in a large real estate investment. If you’re selling property through a 1031 exchange, investing in a DST could be smart. Here’s what you need to know. What Is a 1031 Exchange? A 1031 exchange get

You’ve identified a property within your investment portfolio that isn’t quite right. Maybe it’s not making you enough money, or perhaps it’s not in the right location. A 1031 exchange could help you to trade it for something better, but you must follow the rules to make it work. Some rules involve identification—how you officially name a property (or properties) that you’ll purchase as part of an exchange. These are the 1031 exchange identification rules you should know ab

A 1031 exchange allows investors just like you to diversify their portfolios, make crucial investment adjustments, and otherwise mix things up. While there are multiple opportunities involved in any exchange, it’s vital to make smart decisions. Your 1031 exchange options include everything from residential real estate to vacant city lots. We’ll explain how these transactions work and help you make a smart decision about your financial future here. What Is a 1031 Exchange? As

A 1031 exchange is designed for investments. Typically, people use this tool to sell one investment property (like an office building) to purchase another (like an apartment complex) while avoiding immediate capital gains tax. Per these rules, you can’t move immediately into a property you purchase via a 1031 exchange. However, there are loopholes and techniques you can use to purchase the primary home of your dreams via an exchange. What Is a 1031 Exchange? Capital gains ta

A 1031 exchange allows you to sell one investment property and use the proceeds to buy a different one. You could use this method to diversify your portfolio, dip into a new market, or invest in a new location. But how long must you keep the property you purchase? The so-called 1031 exchange 2-year rule applies here. While all of the contours of this rule aren’t clearly outlined in printed documents from the Internal Revenue Service (IRS), experts often coach their clients t

Navigating the world of 1031 exchanges can feel daunting, whether you’re a first-time investor or a seasoned professional managing a multi-million-dollar portfolio. At 1031 Pros, we have designed our services to cater to both ends of the spectrum—and everyone in between. Here’s why investors of all levels trust us with their 1031 exchanges. Exceptional Customer Service At 1031 Pros, we pride ourselves on providing unparalleled support. When you call, you’ll always reach a liv