A 1031 exchange can be part of a long-term estate strategy, not just a one-time tax deferral. This is a benefit that not many taxpayers are fully aware of. In this article, we discuss how you can include 1031 exchanges in your long-term estate strategy.
The Long-Term Benefits of a 1031 Exchange
There’s nothing in the tax code or treasury regulations that says you can only do one 1031 exchange. Throughout your lifetime, you can do many like-kind exchanges if you so choose. In fact, this is a common strategy for savvy investors who continue to defer their capital gains taxes by conducting subsequent exchanges and reinvesting their proceeds into newer replacement properties. This leads to long-term compounded wealth.
Upon your death, your heirs receive your 1031 exchange property with a step-up in basis. This can leave your heirs with, not only inherited property, but an enviable tax situation upon your passing. For these reasons, many people include 1031 exchanges as a part of their long-term estate planning strategy.
Find a Qualified Intermediary for Your 1031 Exchange
Working with a qualified intermediary is one of the best ways to set yourself up for a successful 1031 exchange. A skilled intermediary can help you through the 1031 exchange process and make sure you are aware of the various rules and regulations that govern 1031 transactions. At CPEC1031, LLC our intermediaries have decades of experience working on 1031 transactions of all types. We can help you with your like-kind exchange regardless of where your property is located. Reach out today to set up a time to speak with our qualified intermediaries.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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