If you own rental property in addition to your primary home, you might be suffering from the “Three Ts”: Tenants, Toilets, and Trash. You want to sell your investment, but you don’t want to pay a massive capital gains tax bill that eats into your retirement funds.

 

Enter the 1031 Exchange

 

This IRS provision, formally known as a Starker Exchange, allows you to sell your investment property and reinvest the proceeds into a new “like-kind” investment property, deferring 100% of your capital gains taxes. It is one of the most powerful wealth-building tools available.

 

A Passive Wealth Strategy

 

My clients often use the 1031 Exchange to pivot from being active landlords to passive investors. They exchange a high-maintenance apartment building for a Delaware Statutory Trust (DST) or a stable commercial property under a triple-net lease. These investments allow you to own real estate and receive monthly income without the daily headache of being a landlord.

 

This is a strategic way to consolidate your wealth and simplify your life in retirement, ensuring that your real estate assets continue to provide passive income for you and the next generation.

 

Are you tired of being a landlord? Let’s discuss a 1031 Exchange strategy to make your wealth work harder and more passively. The first consultation is complimentary. We also offer integrated Mobile Notary Service for investment documentation.