1031 Exchange Basics in Millbrae, CA

1031 Exchange Like Kind Property in Millbrae, CA

Understanding the Fundamentals in Millbrae, CA

A 1031 exchange is one of the most powerful tools available to real estate investors in Millbrae, CA, allowing you to defer capital gains taxes when selling an investment property in Millbrae, CA and reinvesting in another. This strategy enables you to preserve more of your capital, build wealth, and expand your real estate portfolio without the immediate tax burden.

We simplify the exchange process in Millbrae, CA, ensuring you stay compliant with IRS regulations while maximizing your investment potential.

What Is a 1031 Exchange in Millbrae, CA?

A 1031 exchange, named after Section 1031 of the Internal Revenue Code, allows investors in Millbrae, CA to sell one investment property in Millbrae, CA and purchase another of equal or greater value without paying immediate capital gains tax. Instead of cashing out and triggering a taxable event, your proceeds are transferred to a Qualified Intermediary (QI)—like us—who holds the funds until you acquire a replacement property.

By deferring taxes, you can reinvest 100% of your proceeds in Millbrae, CA, giving you more purchasing power for your next investment.

Tax benefits of a 1031 exchange in Millbrae, CA

Qualified Intermediary holding funds in Millbrae, CA

How Does a 1031 Exchange Work in Millbrae, CA

Plan Your Exchange in Millbrae, CA

Before selling your property in Millbrae, CA, consult with a 1031 exchange expert to ensure your transaction is properly structured.

Sell Your Property in Millbrae, CA

Once your property sells, the proceeds are transferred to a Qualified Intermediary in Millbrae, CA—not directly to you—to maintain compliance with IRS rules.

Identify a Replacement Property in Millbrae, CA

Within 45 days of selling your original property in Millbrae, CA, you must identify one or more potential replacement properties in writing in Millbrae, CA.

Purchase the Replacement Property in Millbrae, CA

You have 180 days from the sale of your original property to close on the new property using the proceeds held by your QI in Millbrae, CA.

Complete the Exchange & Defer Taxes in Millbrae, CA

By following IRS rules and deadlines, you successfully defer capital gains tax and reinvest in a new property in Millbrae, CA without losing money to taxes.

Key 1031 Exchange Rules & Requirements in Millbrae, CA

Like-Kind Requirement
– The replacement property in Millbrae, CA must be of the same nature (investment or business use real estate).
45-Day Identification Rule
– You must identify potential replacement properties within 45 days in Millbrae, CA of selling your original property.
180-Day Exchange Rule
– You must close on the new property within 180 days of selling your original property in Millbrae, CA.
Qualified Intermediary (QI) Requirement
– Funds must be held by a third-party intermediary in Millbrae, CA to ensure IRS compliance.
Equal or Greater Value Rule
– To defer all taxes, the new property in Millbrae, CA must be of equal or greater value than the one sold.

Types of 1031 Exchanges in Millbrae, CA

1

Forward Exchange (Traditional 1031 Exchange) – Sell your property first, then purchase the replacement property in Millbrae, CA within the IRS deadlines.
2

Reverse Exchange – Acquire the replacement property in Millbrae, CA before selling the existing one for greater flexibility.
3

Build-to-Suit (Construction Exchange) – Use exchange proceeds to improve or build on the replacement property in Millbrae, CA.
4

Delayed Exchange – The most common type, where funds are held by a Qualified Intermediary in Millbrae, CA while you find a replacement.
5

Simultaneous Exchange – The sale of the relinquished property and purchase of the replacement occur on the same day.

Benefits of a 1031 Exchange in Millbrae, CA

A 1031 exchange allows real estate investors in Millbrae, CA to defer capital gains taxes, keeping more money working for them instead of paying it to the IRS. By reinvesting 100% of the proceeds, investors gain more buying power, making it easier to upgrade to a larger or better-performing property in Millbrae, CA.

This strategy also helps with portfolio growth and diversification in Millbrae, CA, allowing investors to explore new markets, property types in Millbrae, CA, or higher-value assets. Additionally, a 1031 exchange offers estate planning benefits, reducing tax burdens for heirs while enabling long-term wealth accumulation without IRS penalties.

Benefits of a 1031 Exchange in Millbrae, CA

Common 1031 Exchange Mistakes to Avoid in Millbrae, CA

Missing IRS Deadlines – The 45-day and 180-day rules in Millbrae, CA are strict.
Touching the Sale Proceeds in Millbrae, CA – If you take possession of the funds, you’ll owe taxes.
Choosing an Unqualified Intermediary in Millbrae, CA – A trusted QI ensures compliance and security.
Failing to Meet the Like-Kind Rule – Make sure your replacement property qualifies under IRS guidelines.
Not Reinvesting Enough – If you buy a lower-value property, you may owe partial capital gains tax.

Why Choose 1031 Exchange Network in Millbrae, CA?

No-Fee Exchanges – Keep more of your money in Millbrae, CA—$0 upfront fees and interest-bearing accounts.
Security & Compliance – Funds held in segregated FDIC-insured accounts in Millbrae, CA for ultimate safety.
Available 7 Days a Week – Get expert guidance when you need it, from 8 AM–Midnight (EST).
50+ Years of Expertise – Attorneys, CPAs, and exchange specialists in Millbrae, CA guiding every transaction.
Nationwide Service – We facilitate 1031 exchanges across all 50 states in Millbrae, CA.

Get Started with a 1031 Exchange Today in Millbrae, CA

The 1031 exchange process in Millbrae, CA doesn’t have to be complicated—especially when you have the right partner. We make it seamless, secure, and fee-free so you can focus on growing your real estate investments in Millbrae, CA.

Start Your Exchange Schedule a Free Consultation