1031 Exchanges and ESG Investing: Opportunities and Limitations
Many investors today have shifted their focus not only on financial returns but also on the broader impact of their investment strategies. That said, environmental, social, and governance (ESG) factors are increasingly influencing investment decisions for some. For those seeking to align ESG goals with real estate holdings, one potential avenue includes the use of 1031 exchanges.
Can You Recover a Failed 1031 Exchange? Steps and Considerations
A 1031 exchange is a tax-deferred transaction that allows investors to reinvest proceeds from a real estate sale into a like-kind property. If you’re unable to comply with any of the rules the service mandates, you could end up with a failed exchange and a large tax bill. Is there anything you can do if such an event happens? Can you still recover and delay capital gains taxes? The answers depend on the specifics of the failed exchange. Below, Realized 1031 has shared an article outlining potential causes of failure and what to consider if an exchange does not go as planned.
How Inflation May Influence 1031 Exchange Strategy
One of the most persistent economic realities investors must account for is inflation. This phenomenon impacts everything, from grocery prices to real estate. As you navigate the ups and downs of inflationary periods, it’s important to consider how various financial strategies may play a role in preserving purchasing power and supporting long-term planning. One such strategy is the 1031 exchange.
Navigating a 1031 Exchange in a Bankruptcy Situation
1031 exchanges are complex transactions that can offer tax deferral opportunities for investors seeking to reposition into new real estate sectors. The process is governed by strict rules and timelines—and when bankruptcy enters the picture, those layers of complexity increase.
How 1031 Exchanges Support Multigenerational Estate Planning
Estate planning is about more than just transferring wealth; it’s about preserving legacy, reducing tax friction, and how assets may align with long-term family objectives. For clients with investment real estate, 1031 Exchanges can be a component of strategies designed to align current real estate decisions with future estate planning goals.
1031 Exchanges: Understanding the Mechanics of Direct Deeding
A 1031 exchange is a strategy that allows investors to defer capital gains taxes by reinvesting the proceeds from the sale of one investment property into another like-kind property. By doing so, the transaction may avoid triggering an immediate taxable event, potentially extending the time capital remains invested.
