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1031 EXCHANGE

What is a 1031 Exchange?

A 1031 exchange—named after Section 1031 of the Internal Revenue Code—is a tax‑deferral strategy that allows real estate investors to sell one investment property and reinvest the proceeds into another like‑kind property, while deferring capital gains taxes.

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Why People Use It

A 1031 exchange has the potential to help investors:

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  • Preserve more capital by deferring taxes

  • Reposition their portfolio into different markets or property types

  • Consolidate or diversify holdings

  • Transition from active management to more passive structures

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Improve cash flow or long‑term appreciation potential

Important Note  

A 1031 exchange is a powerful tool, but it’s not one‑size‑fits‑all. It’s essential to consult with tax professionals, legal financial, and qualified intermediaries to ensure compliance and alignment with your financial goals.

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Providing specialized financial services for institutional-grade real estate and 1031 tax-deferred exchanges.

CONTACT 

office@ireconsulting.com

(424) 400-9264

Privacy Policy

Terms of Service

1031 Risk Disclosure:

 

  • There is no guarantee that any strategy will be successful or achieve investment objectives;

  • Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments;

  • Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities;

  • Potential for foreclosure – All financed real estate investments have potential for foreclosure;

  • Illiquidity – Because 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. The secondary market for these investments is very limited, and early sale is not guaranteed.

  • Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions;

  • Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits

 

For more information on Emerson Equity, please visit FINRA’s BrokerCheck website. You can also download a copy of Emerson Equity’s Customer Relationship Summary to learn more about their role and services.

 

General Disclosure:

 

Not an offer to buy, nor a solicitation to sell securities. All investing involves risk of loss of some or all principal invested. Past performance is not indicative of future results. Speak to your finance and/or tax professional prior to investing. Any information provided is for informational purposes only.

 

Securities through Emerson Equity LLC Member: FINRA/SIPC. Only available in states where Emerson Equity LLC is registered. Emerson Equity LLC is not affiliated with any other entities identified in this communication.

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