What’s a 1031 Tax-Deferred Exchange and How Does It Benefit Real Estate Investors?

What’s a 1031 Tax-Deferred Exchange and How Does It Benefit Real Estate Investors?

It’s known as the best-kept secret in the U.S. tax code: a 1031 Tax-Deferred Exchange. It’s a secret because can be leveraged to defer paying capital gains on an investment property. But only when an investor almost immediately repurchases another, like-kind property. While the name may make the process sound complicated, 1031 exchanges are much simpler than they sound. 

Because of the 1031 exchange, investors can continue to roll their equity from property to property and delay paying capital gains indefinitely. This is a huge win for investors, and it’s a proven way to build long-term wealth.

Different states have different laws, and Idaho is one of the most favorable states to leverage a 1031 exchange. The biggest driver is the fact that Idaho is one of the most landlord-friendly states in the country. We also have a high-quality, long-term tenant base where evictions are rare, and vacancy rates are below 1%. Plus there are very few regulations regarding how an investor can conduct business as a landlord. Such as no rent controls, no random code violation inspections, and no government intrusion. 

Boise Turnkey Properties is uniquely positioned to guide new and seasoned investors on their 1031 exchange journeys. Because we specialize in real estate investing and are investors ourselves. Our clients love that we “walk the investment talk”. But, we take it a step further!Our team at Boise Turnkey Properties partners with a local 1031 exchange provider to ensure that the process smooth and stress-free for our investor clients.

If you’re considering investing in real estate or expanding your portfolio, contact our team at Boise Turnkey Properties today. We would be honored to assist you with a 1031 Tax-Deferred Exchange personally. Call us today at (208) 957-0870 or email us at corby@boiseturnkey.com.

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