The 1031 Exchange Institute

Welcome to The 1031 Exchange Institute™. The 1031 Exchange Institute is your complete online resource for 1031 exchange, 1033 exchange, 1034 exchange, 721 exchange, 453 installment sale and 121 exclusion information.  Information will also be provided regarding Self-Directed IRAs, including Traditional IRAs, ROTH IRAs, SEP-IRAs and SIMPLE IRAs. 

The 1031 Exchange Institute is dedicated to educating and informing real estate investors and their advisors on the benefits of 1031 tax-deferred exchanges and other tax deferred and tax exlcusion strategies so they can make better informed investment decisions.

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Welcome to The 1031 Exchange Blog.  This 1031 Exchange Blog is sponsored by The 1031 Exchange Institute to help educate and inform real estate investors and their advisors so that they can make better informed real estate investment decisions. 

The 1031 Exchange Blog will cover all things related to 1031 tax deferred exchanges, including delayed or forward, reverse and improvement 1031 exchanges.  You are welcome to post a comment on any of the articles or ask follow-up questions, but please no solicitations or SPAM posts.


1031 Exchanges: Welcome Back! 

For real estate investors located in high tax rate states, such as California, the 1031 Exchange just moved to the top of their to-do list. 

There were some very significant changes made to Federal and state tax codes, and a California real estate investor that sells a $1 million investment property will likely face the following taxes:

  • 20% capital gain tax rate (Federal)
  • 3.8% Medicare Surcharge (Federal) (buried in the Obamacare legislation)
  • 13.3% California Franchise Tax (top California rate for individuals)
  • 25% Depreciation Recapture (Federal)

Real estate investors in these states, especially California, have been flocking to the 1031 Exchange strategy recently, and we should see that trend increase.  It only makes sense for real estate investors to keep their money working for them now that taxes have gone up by such a wide margin.