The 1031 Tax Exchange:
Our Strategy to Maximize Your Money

At Southern California Exchange Services (SCES), we have been helping our clients optimize their real estate investments through 1031 Tax Exchanges for over 13 years. A 1031 Tax Exchange is a wealth-growth strategy that allows real estate investors to defer paying capital gains taxes on the sale of an investment property when the funds are reinvested in a replacement property. There are many rules, requirements, and deadlines for the 1031 Tax Exchange, which we expertly navigate for our clients, offering an easy, seamless process toward building their net worth. Through a 1031 Tax Exchange, our clients can increase the value of their portfolios, putting what would be tax dollars towards higher value properties. And we’ll handle the details, every step of the way.

Why Use SCES?

We are committed to helping our clients pursue and realize their financial goals through real estate investments. The 1031 Tax Exchange process is highly nuanced, with specific details, deadlines, and requirements that must be met. And it is imperative that a qualified intermediary like SCES control the funds during a 1031 Tax Exchange to ensure that sale proceeds are kept out of your account, or they become taxable and the transaction no longer qualifies for the exchange. We have the knowledge and expertise to successfully guide you through the process, and pride ourselves on communication and education, so you feel knowledgeable and comfortable throughout the entire process. 

We operate on properties nationwide and are well-connected with industry friends and partners, with whom we work with in the pursuit of your financial goals to save you time, stress, and money.

A 1031 Tax Deferred Exchange: Why it is Best to Reinvest?

A popular growth strategy for real estate investors, the 1031 Exchange, (also known as a Like-Kind Exchange), allows for the deferral of capital gains taxes on the sale of an investment property when the funds are reinvested into a replacement property.

As noted in IRS Code Title 26, Section 1031 (hence the name), the rule states that when an investment property is exchanged for another similar property, it will not be recognized as either a gain or a loss, if its purpose is business or trade.

With the deferral of capital gains taxes under the 1031 Exchange program, real estate investors can enjoy a significant savings initially (in some cases up to 40%!), and even indefinitely if the capital continues to be reinvested in like-kind properties. There are specific requirements and strict deadlines for the sale and purchase of properties, which are best handled by a qualified intermediary like SCES, in order to ensure a successful transaction. For more information about 1031 Tax Exchange requirements, click here.

Exchange Types