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What You Need to Know About the 1031 Tax-Deferred Exchange

Image of a model house on top of tax formsIf you’re a real estate investor, you’ve probably heard about the 1031 Tax-Deferred Exchange. But you may have questions about how it works. We at The Pujals Team work with a lot of real estate investors, and we find that many are unsure of the details surrounding the 1031 Tax-Deferred Exchange. So, let’s shed some light on this topic. Realize that we are not accountants nor attorneys; therefore, our goal is to give you a quick overview of what the 1031 Tax-Deferred Exchange is. For specific advice, always consult with your tax attorney or accountant.

In the simplest terms, a 1031 Tax-Deferred Exchange is a transaction that allows you to exchange one investment property for another by deferring the tax consequence of a sale. The transaction is authorized by the IRS Code 1031, hence the name.

One important point for clarification is that the exchange can only apply for investment property. That means you must sell one investment property and buy another. You cannot use the exchange to sell your primary residence and buy an investment property. Additionally, you can’t sell an investment property and purchase a primary home.

Image of homes being swappedThere are also some strict timelines to keep in mind. Once you sell your investment property, you have 45 days to identify another property of equal or greater value. Then, you have 180 days from the day you sold your property to acquire the new one.

Of course, as with any tax code, there are many factors to consider. That’s why we suggest you consult with the appropriate professionals to help you through the 1031 Exchange process.

If you have questions about a 1031 Tax-Deferred Exchange, we can direct you to a reliable source who can help. We have worked with several very competent 1031 tax deferred intermediaries over the years. We would be happy to provide you with their contact information.

Remember, you can find many great tips for investors, home buyers, and home sellers on our Facebook page. If you’re searching for the perfect investment property to buy, we can help! Contact us today!

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Welcome! We are glad you’re here. We developed this website to give you the most up-to-date Napa Valley real estate listings and the most reliable information for home buyers and sellers.

Not sure where to start? Check out our blog, vlog, and articles for information on buying and selling a home, design and staging tips, and real estate investor information.

Ready to buy? Be sure to browse our current listings.We are eager to show you your next Napa Valley home.

Relocating to the area? Read up on all the great communities that make up Napa Valley.

Is it time to sell your home? Why not have the #1 real estate team represent you?

We’re sure you have questions. And we are here to help. Contact us for information on anything real estate related.

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About Us

Leading the Pujals team are Jerry and Susan Pujals, who is ranked as the #1 Sales Team for California, Coldwell Banker Brokers of the Valley. Jerry, a Senior Broker, and Real Estate Advisor began his career in real estate with Coldwell Banker Brokers of the Valley in 1997. Susan, a seasoned Real Estate Sales Consultant joined the organization in 2008, which established the formation of The Pujals Team.

Having received national recognition for their performance and many local awards, Jerry and Susan are proud to be affiliated with Coldwell Banker Brokers of the Valley, Napa County’s real estate market leader for more than 20 years.[Read more]

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“Jerry and Susan Pujals are adept at representing both sellers and buyers in this fast-paced Napa market. We’ve seen their work, both as sellers and buyers, and can affirm they shine in both arenas. The Pujals team just finished helping us through multiple real estate transactions: two homes prepared, listed and sold, and one home...” - Jane Callier Read More