1031 Exchange Advisory in South Florida

What is a 1031 Exchange?

With a 1031 Exchange, property owners can defer paying capital gains taxes by reinvesting the proceeds from one investment property into another qualifying property. In Florida, this rule covers properties held for investment purposes or used in a business setting. The replacement property must be of equal or greater value than the one sold, and the equity and loans must also match or exceed the original property. Because 1031 Exchanges come with complex IRS regulations and strict deadlines, working with a qualified intermediary or experienced financial professional, such as a broker, can help ensure compliance and support your overall investment strategy. For investors, a 1031 Exchange is a powerful way to preserve capital, keep building wealth, and reinvest in high-demand South Florida markets.

Types of 1031 Exchanges

1. Delayed Exchange – The most common. You sell your property first, then buy the replacement within 180 days. Identification of the replacement property must occur within 45 days.

2. Reverse Exchange – You buy the replacement property first, then sell the original. Less common and usually requires additional cash for the purchase.

3. Simultaneous Exchange – Both properties close at the same time. Riskier since any delay can disqualify the exchange.

4. Improvement (Construction) Exchange – You can use proceeds from the original property to improve the replacement property. A qualified intermediary holds the deed in trust for up to 180 days while improvements are made.

South Florida Cities We Serve

We help clients find and exchange investment properties in top South Florida markets, including:

Boca Raton

Delray Beach

Deerfield Beach

Highland Beach

Boynton Beach

Parkland

Each city offers unique opportunities for residential and commercial investment properties. Our team helps you identify the best match for your 1031 Exchange goals.

Eligible Property Types

1031 Exchanges in Florida can include a wide variety of properties: apartments, office buildings, retail stores, vacant land, shopping malls, golf courses, storage facilities, hotels, condominiums, nursing homes, and even communication towers. We can help you identify properties that meet the like-kind requirement for your exchange.

How We Help With 1031 Exchanges

We guide clients through the steps of 1031 Exchange in South Florida including:

• Property Identification: Find like-kind properties in markets we know best.

• Market Analysis: Compare neighborhoods, property types, and investment trends.

• Timeline Coordination: Stay on track with 45-day identification and 180-day closing deadlines.

• Qualified Intermediary Guidance: Connect with trusted 1031 exchange intermediaries to ensure compliance.

Benefits of Working With The Mastropieiri Group

South Florida knowledge matters. Our broker helps you:

• Understand property taxes, HOA rules, and regulations in Broward & Palm Beach Counties.

• Identify neighborhoods and property types with the strongest investment potential.

• Offer access to off-market properties that meet your 1031 criteria.

1031 Exchange FAQs

1. What counts as a like-kind property?

A like-kind property is another real estate investment of the same nature, such as residential rental, commercial, or certain land investments. The property must be held for investment or business purposes, not personal use. It’s important to work with an experienced agent or qualified intermediary to make sure your chosen property qualifies under IRS rules, as mistakes can disqualify the exchange.

2. How long do I have to complete the exchange?

You have 45 days from the sale of your current property to identify potential replacement properties, and 180 days to close on the replacement property. These deadlines are strict and cannot be extended, so timing and careful planning are crucial. Our team helps investors track these dates and coordinate the process to ensure the exchange stays on schedule.

Can I exchange from residential to commercial property?

Yes. A 1031 Exchange allows you to move between different types of investment real estate, such as residential rentals, commercial buildings, or even land, as long as both properties are held for investment purposes. Your agent can guide you on the best strategies to identify properties that meet the like-kind requirements while maximizing your investment potential.

Start Your 1031 Exchange in South Florida

Grow your South Florida investment portfolio with a 1031 Exchange guided by local experts. Contact The Mastropieri Group, Realtors®, today to schedule a consultation.

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