1031 Exchange Basics

If you want to sell your business or investment real estate and replace it with new real estate, Section 1031 of the Internal Revenue Code can enable you to defer capital gains and depreciation recapture taxes on the sale of your current property. You can structure the exchange in either order you like (buy first & sell later, or sell first & buy later), as long as you follow IRS guidance and the purchase and sale are completed within 180 days of one another (or before your tax due date).

1031 Timeline

If structured correctly, taxes are deferred until the eventual sale of the replacement property (at which point, you can conduct another 1031 exchange!)—this can significantly increase your purchasing power when shopping for new real estate.

The Qualified Intermediary

IRS guidance requires the use of a “Qualified Intermediary” (QI) when conducting a 1031 exchange. The QI is the entity that converts the separate purchase and sale of properties into an exchange, creating the opportunity for tax deferral.

Why JTC Americas?

JTC Americas (formerly NES Financial) has an industry-leading track record as a 1031 Qualified Intermediary, with more than 30 years in the business and tens of thousands of successful exchanges.

Decades ago, we defined best practices in 1031 exchange security, transparency and compliance, and we built an entire platform (called eSTAC®) to facilitate effortless transactions for our clients. Now, many years later, we’re proud to be one of the industry leaders in 1031 exchange volume and client satisfaction.

Ready to start your 1031 exchange? Our in-house legal and client services teams, with their decades of experience, are standing by to answer any questions you may have.

Complete the Form to Start Your Exchange!