All About 1031 Exchanges

Posted on February 4, 2020
1031 Exchanges | Like-Kind Exchanges | CGI Strategies

If you’re looking for a way to continually invest in high quality real estate while deferring capital gains taxes, we have your answer.

Typically, after you sell your property or investment share, you pay capital gains tax on that income.  But what if you didn’t have to?

1031 Exchanges or “like-kind” exchanges, present solutions.  Here’s how a 1031 Exchange works:

  • You sell your property or investment.
  • You give your profit to a 3rd party to “hold”.
  • Then you have 180 days to close on a “like-kind” property – and can use the money that the 3rd party is holding to pay for it – and defer the capital gains tax.  

The term “like-kind” is fairly flexible.  As long as you’re investing in properties within the United States for business or investment purposes, you have a wide variety of options.

The clear benefits to 1031 Exchanges are the deferred capital gains taxes.  But 1031 Exchanges can also get you out of undesirable assets, diversify your portfolio, and you can pass on properties to your heirs tax-free.

Many investors go into this process on their own – but there is another way.  

There are a few types of 1031 Exchange collectives that make the concept even more appealing.  These collective exist in a few different types but ultimately allow common ownership of a property while still getting the benefits of tax deferment.  This is something we offer at CGI Strategies. 

This means that you don’t have to individually hold the title or manage the property – allowing you to invest in high quality large commercial investments, such as multifamily RE. 

At CGI, we think this means more opportunity for everyone to get in on the incredible benefits of multifamily investment.  

If you are interested in learning more about our 1031 Exchange program, please contact Gregory Khodara.

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