Our experience has shown us that commercial deals are especially complex and unique. If you’re an investor looking to make the most of your real estate ventures, we want to introduce you to a powerful strategy and ally: the 1031 exchange through West Michigan Exchange Services.

Though the strategy name may not inspire enthusiasm, it offers substantial benefits for savvy investors. During market volatility, these tax-deferred exchanges may be particularly valuable, offering potential growth and expansion in your real estate portfolios. West Michigan Exchange Services is a qualified 1031 intermediary that can set you on the path to access these benefits, not just in Michigan as our name implies, but all across the United States.

Here’s an overview of what you need to know: 

  • What’s a 1031 Exchange? This IRS-sanctioned strategy enables you to sell an investment property and defer capital gains taxes by reinvesting the proceeds in another property, provided you adhere to certain rules and regulations. 
  • U.S. Investment Only: Eligible properties must be located within the United States. Those in U.S. territories are ineligible.
  • Exchange Rentals and Non-Residential Property: Generally, your primary residence and your second/vacation home cannot be considered for deferring capital gains when you sell. Nor are they eligible to buy with exchange funds from a valid sale.
  • The Timeline: You have 45 days to identify your next investment property and 180 days to complete the purchase.
  • Qualified Intermediary: Structuring a proper exchange can be challenging, so engaging a qualified intermediary, such as West Michigan Exchange Services, to provide legally compliant exchange documents and secure the holding of the exchange proceeds is a critical step to success.

A 1031 exchange is a strategic way to diversify your portfolio by exploring new property types or markets without facing immediate tax penalties. Moreover, you can use this approach to strategically grow your investments by leveraging tax savings to acquire more valuable properties. 

Whether you’re aiming to simplify your holdings by consolidating multiple properties into one or looking to expand your portfolio, a 1031 exchange offers the flexibility to adjust your investment approach efficiently. Additionally, incorporating 1031 exchanges into your estate planning can be a savvy move, potentially minimizing future capital gains taxes for your heirs.

Over the past two decades, West Michigan Exchange Services has facilitated over 1,000 1031 Exchanges. This ensures that when you partner with us as your Qualified Intermediary, you’re gaining a trusted professional dedicated to the safety, security and success of your investments.

Please don’t hesitate to contact us with any questions. We are always here to ensure your transactions go smoothly.