I hope you enjoy this introduction to the 1031 Exchange. This tool is used everyday by professional Real Estate Investors to grow their portfolios by diverting their Capital Gains tax.

1. The 1031 Exchange
FOR INVESTMENT REAL ESTATE PROFESSIONALS

2. Who Am I?
Jacob Robertson
VP – Business
Development
Wells Fargo Business
Banking

3. 1031 Exchange
Internal Revenue Code provision that defers tax on qualifying exchanges of like-kind real
estate
 Only permissible property is a business or investment real estate
 US properties, and like-kind
 Like-kind is based on value of property being sold
 Timing is CRITICAL
 45 days after closing sale to identify up to three like-kind properties
 180 days to complete the new purchase
 MUST use a Qualified Intermediary
 Certification received through the Federation of Exchange Accommodators

4. 1031 Timeline
All timeline dates MUST be met. If not, the purchase will not qualify as a 1031, and taxes will
need to be paid
Preparation
Period
Identification
Period
Total Exchange Period = 180 Days
Day 0 Day 45
Day 180
Like-Kind Purchase
Period

5. 1031 Benefits
 Buyer
 Delay paying taxes
 Use full gains to buy another property, or properties
 Can use this to buy a larger, more lucrative piece of Investment Real Estate
 Broker
 Opportunity to not only help complete the initial sale, but then help complete
the following purchase or purchases
 Banker
 Chance to act as the Qualified Intermediary
 Chance to help with funding for the new purchases

6. Closing The Deals
Questions?
Please reach out to me!
https://www.linkedin.com/in/jacob-a-robertson/
Thank you for your time!