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1031 Exchange Answers by Top Thousand Oaks Realtors

What is a 1031 Exchange?

A 1031 exchange allows deferring capital gains or losses recognition upon property sale, thus postponing capital gains taxes. However, this complex topic requires expert guidance. Contact your tax accountant for detailed advice.

Understanding “Like-Kind” Properties

Clients often ask, “What are like-kind properties?” For example, can you sell a single-family home and buy a condominium? Alternatively, is it possible to sell a commercial office building and purchase an apartment building? The answer is yes. Under IRC Section 1031, “like-kind” refers to the property’s nature or character, not its grade or quality.

Consequently, the scope of like-kind real estate is broad. The tax code considers any real estate held for trade, business, or investment—whether improved or unimproved—as like-kind. Examples include:

Non-Like-Kind Properties

As shown above, the definition of like-kind is expansive. However, certain properties do not qualify, such as:

Nevertheless, personal property exchanges are possible if held for trade, business, or investment. Specifically, qualifying properties must belong to the same General Asset Class or Product Class. Always consult tax or legal advisors before initiating a 1031 exchange.

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Our Passion for Real Estate

Real estate is more than our job—it’s our passion. Specifically, we love helping clients achieve the American Dream. As dedicated Realtors in Conejo Valley, we strive to maximize your investment potential. Additionally, we enjoy showcasing the unique communities we serve.

Services for Buyers

First, we establish clear criteria for your dream home. Next, we search diligently to find it. Throughout the process, we provide expert advice to ensure your home is a sound investment. During negotiations, we craft competitive offers, respond swiftly to counteroffers, and outmaneuver competitors while maintaining high ethical standards.

Services for Sellers

Initially, we assess your unique situation. Then, we develop a tailored pricing strategy and marketing plan. As interest grows, we attract qualified buyers and adapt to market changes. During negotiations, we secure favorable terms and maximize your proceeds. Finally, we ensure a smooth, convenient move.

Ongoing Commitment

Whether buying or selling, our support extends beyond the transaction. You can rely on us for advice on your home or market conditions anytime. With deep knowledge of Conejo Valley, we offer free market evaluations upon request. Contact us to schedule an appointment. Also, we greatly appreciate recommendations and referrals.