1031 Tax Deferred Exchange
1031 Tax Deferred Exchange
The 1031 Tax Deferred Exchange is a method by which owners of investment property may transfer the equity in their current property into a new property without triggering a taxable event.
What will a 1031 Tax Deferred Exchange do for you?
The 1031 Tax Deferred Exchange preserves your equity by deferring the tax you would pay on the Capital Gain you would realize if you sold your property outright. It allows you to re-leverage your investment, thereby increasing your real estate holdings. You lose none of your equity to taxes, thus allowing you to transfer your maximum equity into the purchase of your next property.
There are several terms used in defining the Exchange process, as well as 3 basic rules.
Terms
DOWNLEG - Property you are relinquishing or selling.
UPLEG - Property you are acquiring or buying.
CONCURRENT EXCHANGE - When the upleg you desire has been located and is available to close escrow at the same time as your downleg.
DELAYED EXCHANGE - (STARKER EXCHANGE) - Used when the upleg property you desire either hasn't been located or if located can't close escrow concurrently with your downleg property, (you must properly identify your upleg property - see rule #3).
BASIS - The cost figure given to you (the client) by your accountant, which is carried over to the new property. It is very important that you have your accountant determine your property's basis, as it is an important consideration in choosing the value of your upleg.
BOOT - The IRS's term for Cash-Value. Boot may be any one of the following or any combination of the following: 1) cash you receive; 2) loans on your current property which are paid off or paid down. (debt relief); 3) loans on your current property which are assumed by the next owner (debt relief); or 4)valuable goods or services - either given or promised as part of the purchase price of your new property.
RULE 1: Like for Like
Investment real estate for investment real estate. You may exchange a duplex for a house, an apartment complex for vacant land in certain instances, etc. (or any combination as long as you follow rule #2).
RULE 2: Equal to or Greater Than
A. The value of your new property must be equal to or greater than the value of your old property, less costs of sale. B. The debt amount (mortgage) on your new property must be equal to or greater than the debt amount on your old property.
RULE 3: Identification
Within 45 days from the close of escrow on your downleg property, you must choose your upleg property. This must be evidenced by purchase contract or notification to escrow or your accomadator. You may identify up to (a) 3 properties of any value or (b) more than 3 properties whose combined values are less than 200% of the value of the downleg property. Escrow on your upleg property must close within 180 days of the date your downleg closed or before you file your next tax return.
Enclosed information is deemed reliable but is not guaranteed.
Testimonials
"
As a Mortgage Banker for 30+ years I've had the privilege to work with thousands of Realtors providing mortgage financing for homebuyers. The best always rise to the top. As the Direct Lender providing the mortgage financing for a repeat client of Janice and I, I've been able to witness Janice's Real Estate Acumen. What stands out is her Professionalism, Knowledge and Communication Skills. Janice was fully involved in her Realtor role and had her hand in and on all aspects of separate transactions representing our mutual client as both the Listing Agent and the Buyers Agent. Both transactions were like a smooth flight with a predictable landing time frame. Janice demonstrated her grasp on all things real estate from contract writing to negotiations to closing. In real estate your best served with a Trusted Real Estate Advisor. Call Janice Greene...Matthew Rundle.
"
- Matthew Rundle
"
It doesn’t get better than Janice when you are purchasing a home (and I’m sure selling too). We were referred to Janice, among a list of other agents, as we began our home search in Banning CA. Janice immediately contacted me after I reached out and started proving resources and contacts so we could become familiar with the area. As we viewed homes in a Four Seasons and Sun Lakes she actually had homeowners meet us, safely of course, while we were visiting the neighborhoods. It is obvious she is very well connected and knows the finer points of evaluating a new area. She was thorough, her communication was frequent, we never had to follow up with her she was proactive and professional, she stays on top of what is going on, even though it’s obvious she is very busy. She always made us feel important and provided sound advice, even on the sale of our home even though she wasn’t our agent on the sale. She really did make the purchase of this home as good as it could get and I plan to stay in touch with her as we really liked her on a personal level too. If you are going to buy or sell she is the agent you should hire. You will be very glad you did, she is the best of the best!
"
- RaeLynn Carr
"
Janice helped find me a home QUICKLY in the beginning wake of COVID-like finding a needle in a haystack. She worked tirelessly to get me into a beautiful home that I could afford, and is everything I desired! She treated me like family, and the communication and updates were constant. Janice has a plethora of knowledge and experience in the real estate field, and it truly shows! I would not hesitate to work with her again, and HIGHLY recommend her services. Thanks Janice!
"
- Jamene Alderson
"
Selling a home can sometimes be a challenge. Janice walked us through the process from start to finish.
It was truly a wonderful experience, she answered our questions, provided great resources for movers, painters and handy man.
When I got flustered with the process of purchasing and selling at the same time, she calmly assured me all was going to be fine and it was!
Great Experience. We highly recommend using Janice Greene for your real estate sales and purchases.
Sinserelt
"
- Patricia Dauphinee
"
Janice is an absolute pleasure to work with. Working on a recent transaction with Janice was a complete breeze! Janice Green is the example of what an agent should be, which is knowledgeable, helpful, professional, and communicative! I would work again with Janice in a heartbeat. Glad there are other agents out there that work hard to make the industry a better place for everyone!
"
- Levi King 909
"
We have worked with Janice Greene on many home transactions performing inspections for her and her clients. She is a knowledgeable veteran realtor that puts the welfare of her clients first. It is a pleasure to serve a professional of her integrity and caliber. Ken Terry American West Home Inspection, Inc.
"
- Elizabeth Terry
"
Janice is an excellent realtor. She’s extremely knowledgeable, and working with her feels like having a true advocate. She was super responsive when I called or texted, and always helpful with providing the info I needed, plus she found me exactly what I was looking for! I would definitely work with her again.
"
- Benjamin Greene
Based on information from California Regional Multiple Listing Service, Inc. as of September 23, 2026 2:32 AM UTC This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
Based on information from California Desert Association of Realtors as of September 23, 2026 2:36 AM UTC The information being provided by California Desert Association of Realtors, SoCalMLS, CRISNet MLS, and CARETS is for the consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumer may be interested in purchasing. Any information relating to real estate for sale referenced on this web site comes from the Internet Data Exchange
The MLS™ Combined LA/Westside MLS® (CLAW): All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers
