What is a 1031 EXCHANGE?

According to Section 1031 of the Internal Revenue Code (IRC), if an investor has property they currently own, they can sell that property, and if they reinvest the proceeds into a replacement property, there’s no immediate tax consequence to that particular transaction. They can defer any capital gains taxes associated with that sale allowing them to defer federal taxes on some exchanges of real estate.  However,  it is not available to buyers or sellers of personal homes for their own use.

1031 DST offering example:
Glendale BTR, DST
Glendale, AZ

How Does a 1031 EXCHANGE WORK?

Jim bought a
commercial
office space for
$100,000

Jim set up his
exchange and sold
the building for
$300,000

Jim re-invested all of his profit into
new, no-management investments
providing him competitive monthly income, while deferring his capital gains tax liability