1031 Exchange for Oil, Gas, Water, Mineral, and Ditch Rights

City of London corporate office buildings vertical perspective

When we think of 1031 exchanges, we picture investors swapping one property for another. This is the most common scenario, but there are cases when the transactions are a little more unconventional. In fact, you can exchange oil, mineral, gas, water, and ditch rights through a 1031 exchange. Done correctly, such a practice can help you defer capital gains taxes as outlined by Section 1031 of the Revenue Code.

May 16, 2025

What Language Should Be Added to a Contract in a 1031 Exchange?

Percentage and house, condominium sign symbol icon wooden on wood table.

Entering a 1031 exchange is a good strategy that can help you preserve your capital while diversifying your investment portfolio. If you follow the rules set by the IRS, you can enjoy tax-deferral benefits that let you delay payments for capital gains taxes. There are, however, many 1013 exchange rules, including the proper contract language for the sale and purchase agreements.

May 15, 2025

The Pros and Cons of Using an Occupied Duplex in a 1031 Exchange

  Search by image or video Roof shingles with garret house on top of the house among a lot of trees. dark asphalt tiles on the roof.

Acquiring a property through a 1031 exchange lets investors diversify their portfolio alongside some great tax deferral benefits. As an investor, you’ll naturally want an asset that matches your preferences and helps you achieve your financial goals. One popular option is an occupied duplex property, offering various benefits like immediate cash flow. Even so, there are some challenges to keep in mind to minimize issues.

May 14, 2025

How Do I Report a 1031 Exchange on My 1040?

Real Estate Graph. House market growth.

Undergoing a 1031 exchange can be an advantageous investment strategy that lets you diversify your portfolio, grow your capital, and defer capital gains taxes for investors. To maintain your tax-deferred status, however, the IRS has set strict rules. These stipulations include proper reporting during tax filing. However, this step of the process can be complex.

May 13, 2025

What Is a Non-Safe Harbor 1031 Exchange?

Sunlight peering over modern urban buildings.

Undergoing a 1031 exchange is a strategic move that allows you to defer capital gains taxes. The IRS has many stipulations regarding these transactions to prevent abuse, with safe harbor rules providing definitive language for full compliance. However, some investors still choose to complete a non-safe harbor 1031 exchange due to special circumstances.

May 12, 2025

How Long Does a 1031 Exchange Need To Be Rented?

Aerial view top down drone of the industrial zone in Gaborone in Commerce Park

A 1031 exchange allows you to enjoy tax-deferral benefits as you reinvest proceeds from a property sale into another like-kind asset. However, the IRS does require you to hold the acquired property for business or investment use. This rule can impede people who may want to convert their assets later, such as turning a rental property into their primary residence. In this blog post, Realized 1031 discusses how long a 1031 exchange needs to be rented to maintain your tax-deferred status and avoid IRS scrutiny.

May 11, 2025

Download The Guide To 1031 Exchange

The 1031 Investor's Guidebook
Download eBook