1031 Exchange Basics in Stevenson, CT

1031 Exchange Like Kind Property in Stevenson, CT

Understanding the Fundamentals in Stevenson, CT

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

What Is a 1031 Exchange in Stevenson, CT?

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

Tax benefits of a 1031 exchange in Stevenson, CT

Qualified Intermediary holding funds in Stevenson, CT

How Does a 1031 Exchange Work in Stevenson, CT

Plan Your Exchange in Stevenson, CT

Before selling your property in Stevenson, CT, consult with a 1031 exchange expert to ensure your transaction is properly structured.

Sell Your Property in Stevenson, CT

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

Identify a Replacement Property in Stevenson, CT

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

Purchase the Replacement Property in Stevenson, CT

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 Stevenson, CT.

Complete the Exchange & Defer Taxes in Stevenson, CT

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

Key 1031 Exchange Rules & Requirements in Stevenson, CT

Like-Kind Requirement
– The replacement property in Stevenson, CT 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 Stevenson, CT 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 Stevenson, CT.
Qualified Intermediary (QI) Requirement
– Funds must be held by a third-party intermediary in Stevenson, CT to ensure IRS compliance.
Equal or Greater Value Rule
– To defer all taxes, the new property in Stevenson, CT must be of equal or greater value than the one sold.

IRS 1031 exchange rules in Stevenson, CT

Types of 1031 Exchanges in Stevenson, CT

1

Forward Exchange (Traditional 1031 Exchange) – Sell your property first, then purchase the replacement property in Stevenson, CT within the IRS deadlines.
2

Reverse Exchange – Acquire the replacement property in Stevenson, CT before selling the existing one for greater flexibility.
3

Build-to-Suit (Construction Exchange) – Use exchange proceeds to improve or build on the replacement property in Stevenson, CT.
4

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

A 1031 exchange allows real estate investors in Stevenson, CT 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 Stevenson, CT.

This strategy also helps with portfolio growth and diversification in Stevenson, CT, allowing investors to explore new markets, property types in Stevenson, CT, 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 Stevenson, CT

Common 1031 Exchange Mistakes to Avoid in Stevenson, CT

Missing IRS Deadlines – The 45-day and 180-day rules in Stevenson, CT are strict.
Touching the Sale Proceeds in Stevenson, CT – If you take possession of the funds, you’ll owe taxes.
Choosing an Unqualified Intermediary in Stevenson, CT – A trusted QI ensures compliance and security.
Failing to Meet the Like-Kind Rule – Make sure your replacement property qualifies under IRS guidelines.
Not Reinvesting Enough – If you buy a lower-value property, you may owe partial capital gains tax.

Why Choose 1031 Exchange Network in Stevenson, CT?

No-Fee Exchanges – Keep more of your money in Stevenson, CT—$0 upfront fees and interest-bearing accounts.
Security & Compliance – Funds held in segregated FDIC-insured accounts in Stevenson, CT 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 Stevenson, CT guiding every transaction.
Nationwide Service – We facilitate 1031 exchanges across all 50 states in Stevenson, CT.

Get Started with a 1031 Exchange Today in Stevenson, CT

The 1031 exchange process in Stevenson, CT 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 Stevenson, CT.

Start Your Exchange Schedule a Free Consultation