The Synergy of Relocations and 1031 Exchanges

One of the biggest conundrums facing investors is what to do with investment real estate when relocation is in their future. Typically, this phenomenon hits aging investors close to retirement the hardest. They’ve worked hard to build up a solid portfolio of real estate close to home. Yet with retirement around the corner, they have a desire to seek out a more hospitable location for their golden years.

The question then becomes “what to do with their investment property?”

The most obvious option is sell it, but that would create a potentially big capital gains tax hit. So instead, maybe hanging on to it is the better choice. But that means actively managing a rental property from thousands of miles away. A rather bleak prospect, too.

What many investors choose instead is to leverage the power of a #1031 exchange to trade their current investment property for something in their new location. They can stay in the investment real estate game, but also avoid capital gains tax on the sale of their existing property.

At the same time, many of these investors consider options like a Delaware Statutory Trust to eliminate their day-to-day responsibilities. They can still receive a steady flow of income from their investment, but the responsibilities for keeping things running smoothly lies with someone else.

If you find yourself considering a relocation and want to consider all options for disposition of your current investment real estate, a 1031 exchange may be the answer.

If you’re considering a 1031 exchange, please visit our website to learn more about the exchange process, our qualified intermediary services and how we can help you find and close on your next 1031 exchange property.