Sep 25, 2023
Maxwell Finch
Understanding the 1031 Exchange
A 1031 exchange, also known as a like-kind exchange, is a strategic method for selling one property, that's qualified, and then proceeding with an acquisition of another property (also qualified) within a specific time frame. The logistics and process of this strategy is, by no means, simple. But, that's where we come in.
Latest Trends in Tulsa's 1031 Exchange Market
The Tulsa real estate market is booming, and savvy investors are leveraging the benefits of the 1031 exchange. Here are some trends to watch:
Increased Demand for Commercial Properties: Investors are increasingly swapping residential properties for commercial ones to reap higher returns.
Shift Towards 'Hands-Off' Investments: More investors are looking at triple net leases, where the tenant handles most property expenses.
Use of DSTs: Delaware Statutory Trusts (DSTs) are becoming popular for their flexibility and potential for diversification.
Top Tips for Navigating the 1031 Exchange Market in Tulsa
Here are some tips to help you navigate this complex landscape:
Work with a Qualified Intermediary: A qualified intermediary, like Castling Tax, will guide you through the process, ensuring all IRS requirements are met.
Identify Suitable Replacement Properties: You have 45 days to identify potential replacement properties after selling your relinquished property. Make sure you have a strategy in place.
Understand the Impact on Taxes: Properly executed, a 1031 exchange can defer capital gains taxes. Use our free capital gains calculator to understand the potential savings.
Stay Updated With Castling Tax
Staying updated with the latest trends and tips in the 1031 exchange market can be the difference between a good investment and a great one. At Castling Tax, we're committed to keeping you ahead of the curve. Reach out to us here for any queries or assistance.