What is a 1031 Property Exchange?


Section 1031 of the IRS Code allows owners of business or investment property to sell their property through an "exchange" by purchasing other "like-kind" property and defer up to 100% of the capital gains taxes otherwise due on the sale of their first property. The IRS defines "like-kind" as any real property held for business or investment purposes. This includes, but is not limited to, raw land, farmland, rental and commercial properties.

Your Direct Real Estate Exchange Options At AEI

  • Full ownership.
    Buy an entire property and be the sole owner.
  • Fractional ownership.
    Purchase a portion of a property as a TIC (tenant-in-common) or DST (Delaware Statutory Trust) owner with other fractional owners. You can diversify your real estate holdings by purchasing interests in multiple properties.