Archon Capital is one of the leading providers of Single Family Rental 1031 Exchanges in the Industry.
1031 exchanges can be utilized for exchanging in and/or out of Single-Family Rental investment property.
The sale or disposition of real property (relinquished property) and the acquisition of like-kind real estate (replacement property) structured as a tax-deferred, 1031 exchange transaction pursuant to Section 1031 of the Internal Revenue Code and Section 1.1031 of the Treasury Regulations in order to defer Federal, and in most cases state, capital gain and depreciation recapture taxes as well.
In a 1031 transaction the capital gains taxes are deferred, not eliminated. It is important to note that when the replacement property is ultimately sold the original deferred gain and any additional gains on the replacement property will be subject to tax. The exception being if the replacement property is sold as part of another 1031 exchange. Taxpayers must report an exchange to the IRS on Form 8824, Like-Kind Exchanges and file it with their tax return for the year in which the exchange occurred. While 1031 exchanges require careful planning and close oversight, they are a powerful tool to preserve an investor’s purchasing power.