1031 Exchange Basics in Hickory Hills, IL

1031 Exchange Like Kind Property in Hickory Hills, IL

Understanding the Fundamentals in Hickory Hills, IL

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

What Is a 1031 Exchange in Hickory Hills, IL?

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

Tax benefits of a 1031 exchange in Hickory Hills, IL
Qualified Intermediary holding funds in Hickory Hills, IL

How Does a 1031 Exchange Work in Hickory Hills, IL

Plan Your Exchange in Hickory Hills, IL

Before selling your property in Hickory Hills, IL, consult with a 1031 exchange expert to ensure your transaction is properly structured.

Sell Your Property in Hickory Hills, IL

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

Identify a Replacement Property in Hickory Hills, IL

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

Purchase the Replacement Property in Hickory Hills, IL

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 Hickory Hills, IL.

Complete the Exchange & Defer Taxes in Hickory Hills, IL

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

Key 1031 Exchange Rules & Requirements in Hickory Hills, IL

  • Like-Kind Requirement

    – The replacement property in Hickory Hills, IL 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 Hickory Hills, IL 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 Hickory Hills, IL.

  • Qualified Intermediary (QI) Requirement

    – Funds must be held by a third-party intermediary in Hickory Hills, IL to ensure IRS compliance.

  • Equal or Greater Value Rule

    – To defer all taxes, the new property in Hickory Hills, IL must be of equal or greater value than the one sold.
Real estate investor in Hickory Hills, IL
IRS 1031 exchange rules in Hickory Hills, IL

Types of 1031 Exchanges in Hickory Hills, IL

  1. 1

    Forward Exchange (Traditional 1031 Exchange) – Sell your property first, then purchase the replacement property in Hickory Hills, IL within the IRS deadlines.

  2. 2

    Reverse Exchange – Acquire the replacement property in Hickory Hills, IL before selling the existing one for greater flexibility.

  3. 3

    Build-to-Suit (Construction Exchange) – Use exchange proceeds to improve or build on the replacement property in Hickory Hills, IL.

  4. 4

    Delayed Exchange – The most common type, where funds are held by a Qualified Intermediary in Hickory Hills, IL while you find a replacement.

  5. 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 Hickory Hills, IL

A 1031 exchange allows real estate investors in Hickory Hills, IL 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 Hickory Hills, IL.

This strategy also helps with portfolio growth and diversification in Hickory Hills, IL, allowing investors to explore new markets, property types in Hickory Hills, IL, 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 Hickory Hills, IL
Common 1031 Exchange Mistakes to Avoid in Hickory Hills, IL

Common 1031 Exchange Mistakes to Avoid in Hickory Hills, IL

  1. Missing IRS Deadlines – The 45-day and 180-day rules in Hickory Hills, IL are strict.

  2. Touching the Sale Proceeds in Hickory Hills, IL – If you take possession of the funds, you’ll owe taxes.

  3. Choosing an Unqualified Intermediary in Hickory Hills, IL – A trusted QI ensures compliance and security.

  4. Failing to Meet the Like-Kind Rule – Make sure your replacement property qualifies under IRS guidelines.

  5. Not Reinvesting Enough – If you buy a lower-value property, you may owe partial capital gains tax.

Why Choose 1031 Exchange Network in Hickory Hills, IL?

  • No-Fee Exchanges – Keep more of your money in Hickory Hills, IL—$0 upfront fees and interest-bearing accounts.
  • Security & Compliance – Funds held in segregated FDIC-insured accounts in Hickory Hills, IL 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 Hickory Hills, IL guiding every transaction.
  • Nationwide Service – We facilitate 1031 exchanges across all 50 states in Hickory Hills, IL.
Why Choose 1031 Exchange Network in Hickory Hills, IL?
Get Started with a 1031 Exchange Today
Get Started with a 1031 Exchange Today in Hickory Hills, IL

The 1031 exchange process in Hickory Hills, IL 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 Hickory Hills, IL.

Start Your Exchange Schedule a Free Consultation