1031 Exchange Basics in Riverton, NJ

1031 Exchange Like Kind Property in Riverton, NJ

Understanding the Fundamentals in Riverton, NJ

A 1031 exchange is one of the most powerful tools available to real estate investors in Riverton, NJ, allowing you to defer capital gains taxes when selling an investment property in Riverton, NJ 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 Riverton, NJ, ensuring you stay compliant with IRS regulations while maximizing your investment potential.

What Is a 1031 Exchange in Riverton, NJ?

A 1031 exchange, named after Section 1031 of the Internal Revenue Code, allows investors in Riverton, NJ to sell one investment property in Riverton, NJ 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 Riverton, NJ, giving you more purchasing power for your next investment.

Tax benefits of a 1031 exchange in Riverton, NJ

Qualified Intermediary holding funds in Riverton, NJ

How Does a 1031 Exchange Work in Riverton, NJ

Plan Your Exchange in Riverton, NJ

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

Sell Your Property in Riverton, NJ

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

Identify a Replacement Property in Riverton, NJ

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

Purchase the Replacement Property in Riverton, NJ

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 Riverton, NJ.

Complete the Exchange & Defer Taxes in Riverton, NJ

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

Key 1031 Exchange Rules & Requirements in Riverton, NJ

Like-Kind Requirement
– The replacement property in Riverton, NJ 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 Riverton, NJ 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 Riverton, NJ.
Qualified Intermediary (QI) Requirement
– Funds must be held by a third-party intermediary in Riverton, NJ to ensure IRS compliance.
Equal or Greater Value Rule
– To defer all taxes, the new property in Riverton, NJ must be of equal or greater value than the one sold.

Types of 1031 Exchanges in Riverton, NJ

1

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

Reverse Exchange – Acquire the replacement property in Riverton, NJ 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 Riverton, NJ.
4

Delayed Exchange – The most common type, where funds are held by a Qualified Intermediary in Riverton, NJ 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 Riverton, NJ

A 1031 exchange allows real estate investors in Riverton, NJ 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 Riverton, NJ.

This strategy also helps with portfolio growth and diversification in Riverton, NJ, allowing investors to explore new markets, property types in Riverton, NJ, 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 Riverton, NJ

Common 1031 Exchange Mistakes to Avoid in Riverton, NJ

Missing IRS Deadlines – The 45-day and 180-day rules in Riverton, NJ are strict.
Touching the Sale Proceeds in Riverton, NJ – If you take possession of the funds, you’ll owe taxes.
Choosing an Unqualified Intermediary in Riverton, NJ – 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 Riverton, NJ?

No-Fee Exchanges – Keep more of your money in Riverton, NJ—$0 upfront fees and interest-bearing accounts.
Security & Compliance – Funds held in segregated FDIC-insured accounts in Riverton, NJ 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 Riverton, NJ guiding every transaction.
Nationwide Service – We facilitate 1031 exchanges across all 50 states in Riverton, NJ.

Get Started with a 1031 Exchange Today in Riverton, NJ

The 1031 exchange process in Riverton, NJ 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 Riverton, NJ.

Start Your Exchange Schedule a Free Consultation