1031 Exchange Trends in Market

If you are planning to do 1031 exchange and want to reinvest the proceeds for the benefit, then you can get connected with us, i.e., 1031sponsors.com to know what are the latest 1031 Exchange trends in the market nowadays. We are here to help you with each and every step of the exchange to serve the best for you. So, before opting for the 1031 exchange, you should get a brief knowledge of the 1031 Exchange along with the latest 1031 Exchange trends.

What is a 1031 Exchange?

1031 exchange came into the function from segment 1031 of the IRC (Internal Revenue Code). This rule is used as an excellent tool for deferring the capital gain taxes. Under the 1031 exchange, the investor sells the property and reinvests the proceeds to buy new replacement property, and defer all the capital gain taxes within 180 days of the sale the property. A qualified intermediary is a person without whose involvement the exchange cannot be completed. The money received from the sale of the relinquished property is kept in an escrow account. The investor under this exchange is not allowed to touch the cash, if so then he/she gets disqualified from the 1031 Exchange.

To capacitate for Section 1031 of the Internal Revenue Code, the properties that are exchanged must be used for investment or for productive use in business. Before 2018, stocks, bonds, and different properties were listed as explicitly prohibited by Section 1031 of the Internal Revenue Code. The securitized properties were not excluded under this.  Now only real estate properties are included under 1031 exchange. The properties that we exchange under 1031 exchange must be of ‘like-kind’. This means that they must be of the same nature or character, even if they differ in grade or quality. Private properties of the same class were like-kind properties under the pre-2018 provisions. Personal property used predominantly in the United States and own property used elsewhere was not like-kind properties.

1031 Exchange Trends:

Now we will introduce to the latest 1031 Exchange trends in the market that we see:

  1. Unallocated gold and silver bullion can be exchanged for the physical metal;
  2. It has been noticed that bonus depreciation for corporations has reduced the need for 1031 exchanges in like-kind exchange programs;
  3. All the buyers present in the market are cash buyers for both individuals and corporations;
  4. The number of reverse 1031 exchanges have increased than the traditional forward acquiring undervalued properties in preparation for the current upward trending business cycle;
  5. Desire to diversify replacement property into oil and gas royalties as an alternative to real estate has developed in buyers.

All the information provided above has been researched and thought to be knowledgeable for you. For consultation and assistance regarding 1031 Exchange trends, you can call – 888-876-6005 or Click here to contact one of our Advisors to know more about the 1031 Exchange trends. You can also email us at info@1031sponsors.com.