1031 Exchange in San Jose – Maximize Your Investment Potential

Steven Gary | Your 1031 Exchange Partner

What is a 1031 Exchange?

A 1031 Exchange allows real estate investors to sell an investment property and reinvest the proceeds tax-deferred. By following IRS guidelines, you can defer capital gains taxes and grow your portfolio faster and smarter.. 

1031 Exchange Rules & Timelines

To qualify for a tax-deferred exchange, you must:
📌 Use a Qualified Intermediary to handle the transaction
📌 Identify a replacement property within 45 days of selling your current property
📌 Close on the new property within 180 days

What Qualifies as a Replacement Property?
In a 1031 Exchange, most real estate is considered like-kind, meaning you can exchange:
✅ Rental properties, multifamily units, and apartment buildings
✅ Commercial properties (office, retail, industrial, storage units)
✅ Vacant land, mixed-use, and investment real estate
As long as both properties are used for business or investment purposes, they qualify under IRS 1031 rules.

Maximizing Your Investment

To defer all capital gains taxes, your new property must be equal to or greater than the one you sell. If you buy at a lower value, you may owe taxes on the difference.

What is Like-Kind Property in a 1031 Exchange?

A like-kind exchange means you can reinvest in any type of investment real estate within the U.S., including:
✅ Apartment buildings & multifamily units
✅ Commercial real estate (office, retail, industrial)
✅ Storage units, mixed-use properties & mobile home parks
✅ Vacant land, farms & other income-producing real estate

Free 1031 Exchange Consultation

Thinking about deferring taxes and growing your real estate portfolio? We work with a trusted Qualified Intermediary to ensure a smooth, IRS-compliant exchange.
Let’s strategize your next move! Schedule a free consultation today.

Example: How a 1031 Exchange Works

Imagine you own a rental property in San Jose that you bought for $500,000. Over time, its value has increased to $1,000,000. If you sell the property outright, you’d owe capital gains taxes on the $500,000 profit.

However, by using a 1031 Exchange, you can reinvest the full proceeds into a new investment property—deferring taxes and keeping more money working for you. This allows you to:
✅ Preserve cash flow & reinvest 100% of your equity
✅ Upgrade to a larger or higher-value property
✅ Continue growing your real estate portfolio tax-deferred

A 1031 Exchange is a powerful wealth-building tool for investors looking to maximize returns while minimizing tax liability.

1031 PARTNER