An Exceptional Exchange Experience, Made Easy. |
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1031 Exchanges for a Healthy Real Estate Market |
Your storefront, warehouse, or small office building was part of a $2.3 trillion contribution that commercial real estate made to the annual US gross domestic product (GDP) in 2022. And that doesn’t count residential investment or agricultural real estate. 1031 exchanges were involved in 10-20% of these commercial real estate transactions in 2022. Exchanges have a big impact!
Exchanges are more than just part of the real estate market—they contribute to the health of the market, helping create stability, mobility, and growth.
As you know, 1031 exchanges, also known as like-kind exchanges, defer capital gains when an investor or business owner sells property and uses the funds to purchase another investment property. Two studies on the impact of 1031 exchanges on the commercial real estate market and the US economy shed light on the importance of Section 1031 of the Internal Revenue Code, which gives a 1031 exchange its power. The studies found that that exchanges are more than just a tax benefit for investors–they are good tax policy and a driver of the market.
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1031 exchanges are involved in a significant portion of commercial real estate and the nation's $26 trillion GDP.
Exchanges help balance and grow a healthy real estate market.
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The 1031 CORP. Exchanging Thoughts Blog
Looking for another perspective on 1031 exchanges and the real estate industry?
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Upcoming Webinars
>> Thursday, January 4, 2023
12:00 Noon Eastern
>> Thursday, February 1, 2023
12:00 Noon Eastern
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1031 CORP. provides an easy-to-follow overview of 1031 exchanges and their many benefits. We'll also review the requirements of a successful exchange and the essential role of 1031 CORP. to keep the exchange transaction simple for all parties. |
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1031 CORP. Celebrates Milestone in Bend, Oregon |
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Last month, the 1031 CORP. Team celebrated a milestone with our valued clients and referral partners.
It was twenty years ago that 1031 Asset Exchange opened its doors as an affiliate of Western Title & Escrow. George Slape and founding president, Sanna Phinney, were a great team. George eventually sold 1031 Asset Exchange, or 1031 AE, to Sanna. In 2013, 1031 CORP. began providing back office support for 1031 Asset Exchange and in 2014, acquired the assets of the company. Since 2014, the 1031 CORP. Team has worked hard to continue to provide the same exceptional exchange experience delivered by Sanna and her team.
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Margo McDonnell, President, 1031 CORP., and George Slape, original owner of 1031 Asset Exchange. |
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It is very exciting to be celebrating this milestone! I am ever so grateful to George Slape, for without him, 1031 Asset Exchange would never have come to be. The incredible support from our friends in the Bend and surrounding communities made this business thrive from Day One.
Thank you to 1031 CORP. for keeping my “baby” going strong. I never doubted you were the right partner!
While I wish I could be there to celebrate with you, Chuck and I are enjoying living in the South of France. We are spending our retirement cycling quiet roads, hiking in the fabulous Pyrenees mountains, and skiing our local slopes and trails.
Thank you for making 1031ae and 1031 CORP. so successful. We could not have done it without you!
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1031 CORP. Exhibits, Teaches at Triple Play Convention
Sharing The Power of 1031 Exchanges Message
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Earlier this month, the 1031 CORP. Team exhibited at Triple Play 2023 REALTORS® Convention and Trade Expo in Atlantic City. The annual convention brings together members of the Pennsylvania Association of REALTORS®, New Jersey Association of REALTORS® and New York State Association of REALTORS®. 1031 CORP. President Margo McDonnell was selected to teach a 3-hour continuing education course titled, “The Power of 1031 Exchanges.” The course reviewed nearly a dozen case studies highlighting how the benefits of 1031 exchanges expand far beyond the deferral of gain. Margo shared insights on the goals exchangers can accomplish and problems 1031 exchanges can help solve. Margo McDonnell, Marissa LoCascio, Bruce Glendinning and Katie Bromley had a blast sharing that same message with the hundreds of real estate professionals who visited our exhibit.
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1031 CORP. Team members Margo McDonnell, Marissa LoCascio, Katie Bromley and Bruce Glendinning at the Triple Play REALTORS® Convention and Trade Expo, 2023, in Atlantic City, New Jersey in December.
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Schedule a 1031 Presentation |
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1031 CORP.'s Sabrina Richards Earns CES® Designation
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Sabrina Richards, a 1031 CORP. Exchange Officer based in Collegeville, earned her Certified Exchange Specialist® (CES®) designation through the Federation of Exchange Accommodators. Certified Exchange Specialists® have demonstrated their knowledge of Section 1031 and its application through independent third-party testing. Candidates must meet a three-year experience requirement and pass a rigorous examination for this achievement. Sabrina joins 1031 CORP.’s seven CES® Designees on staff.
Congratulations, Sabrina!
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Tawnee Burton
Exchange Coordinator
1031 CORP.
Bend, Oregon
(541) 388-1031 ext. 238
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Tawnee Burton
Role: Exchange Coordinator
Location: Bend, Oregon
What opportunities does 1031 present to your clients?
Overall, the tax benefit is huge and is the first benefit. There’s also the opportunity for growth because a client must invest equal or greater value in the property. 1031 pushes clients toward greater equity, better property, and a larger investment. Clients can diversify, moving from single family to multifamily, commercial, agricultural, or other types of investments. Exchanges open new options for investment. There’s more potential for profitability and increased cash flow.
My advice is to talk to a CPA or your tax or legal advisor. Make sure it makes sense to consider a 1031. Some properties are not worth an exchange—either holding the investment for too short of a period, high basis, or not much gain. Your tax advisor can help with your unique circumstances.
You are serving in the military. How has that experience shaped you?
I have been serving in the National Guard for six years and am still active. Following initial training, I was originally stationed in Northern Nevada, in Reno. I was sent to the border in Texas and was on state active duty for 13 months, where I helped with the border crisis. As a paralegal, I handled issues and legal situations for soldiers, wrote policy letters, gave legal briefs on rules of engagement and use of force, and presented briefs to soldiers who work with migrants.
The National Guard gave me great relevant experience for my career. I talked to soldiers and their families every day. I became comfortable talking with all types of people.
I trained on-the-job. I worked with soldiers and veterans on wills, policy letters, contracts with attorneys, and assisted soldiers with landlords. I learned about real estate law, landlord laws. Other skills have been important for my career as well. Working with computers, professional communications, customer service. It’s been an important experience that has shaped my career.
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Poll: What is your outlook for the market in 2024? |
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Please select only one answer. Poll results will be reported next month.
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Poll: What is the best source for market info? |
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Your poll answers from the October issue of Exchanging Times
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Serving as a nationwide Qualified Intermediary for 1031 tax-deferred exchanges since 1991, 1031 CORP. strives to provide an exceptional exchange experience made easy for our clients and their advisors. We provide our clients with enhanced security of funds, knowledgeable exchange professionals and a commitment to keep the exchange process simple for our clients and their advisors. Our Exchange Team, which includes Certified Exchange Specialists®, has the experience and expertise to facilitate even the most complex exchange transactions, including reverse and improvement exchanges.
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