Besides tax deferment, here are three benefits of a 1031 exchange:
1. Change property types – 1031 exchanges allow you to exchange into different types of investment real estate like residential to commercial or land to residential. The stipulation is your replacement property must be held for “business or investment purposes.”
2. Move markets – Are you looking to take the proceeds of your sale in another area like the Northeast or a state like California and come to Florida without state income tax?
3. Consolidation – are you sick of the residential portfolio properties and want to own an office building or industrial park instead?
While you can change property types or move markets, the owner on the title can’t change and all proceeds must be reinvested. Our firm has helped many real estate investors navigate 1031 exchanges with the disposition of the relinquished property and acquisition of the replacement property. Feel free to reach out if you ever have any questions on this process.
Amy Calandrino, CCIM is a Commercial REALTOR and founder of Beyond Commercial a commercial real estate firm serving entrepreneurs and professionals. Amy is an engaged Winter Park resident / business owner and passionate about community involvement. Outside of the office, Amy serves on a number of boards and committees including but not limited to: Florida CCIM Chapter Central District as President, Winter Park Chamber of Commerce Leadership Alumni Council President, Victim Service Center of Central Florida Cheers to Change Committee, and Seacoast Bank Central Florida Advisory Board.
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