1031 Exchanges are the best way to defer capital gains taxes.

Do you have a real estate investment you'd like to sell, but concerns about capital gains taxes are holding you back? A 1031 Exchange is the answer to your dilemma.

A 1031 Exchange is an IRS-sanctioned maneuver that enables you to sell off an investment but buy another of "like kind" and thus avoid having to pay capital gains taxes. Many real estate buyers take advantage of the 1031 Exchange by selling their investment property but buying another (or more than one) and thus legally sidestepping the need to pay capital gains taxes. In most cases, the properties we offer as Co-Ownership investments qualify for this totally legal loophole.

According to the 1984 Congressional Tax Reform Act, owners can sell an income property and defer capital gains tax by identifying a "like-kind" exchange property within 45 days and then reinvesting the profits within 180 days.

·        By 1986, an increase in capital gains taxes had re-ignited interest in 1031 Exchanges.

·        In 2002, the IRS issued new guidelines on the way in which a group of buyers can pool their equity and acquire larger properties, with each still satisfying his or her individual 1031 Exchange requirements and deferring capital gains taxes.