A 1031 exchange is a tax strategy that allows real estate investors to sell an investment property and reinvest the proceeds into another “like-kind” property without immediately paying capital gains taxes. In plain terms, it lets you keep all of your money working for you instead of sending a large...
A 1031 exchange is a tax strategy that allows real estate investors to sell an investment property and reinvest the proceeds into another “like-kind” property without immediately paying capital gains taxes. In plain terms, it lets you keep all of your money working for you instead of sending a large portion to the IRS.
This strategy matters because deferring taxes frees up more capital to purchase larger or multiple properties, which can increase cash flow and build long-term wealth. For example, selling one California rental through a 1031 exchange could allow an investor to acquire several newer, higher-performing homes in Memphis or Northern Mississippi, creating more income and diversification.
At Meridian Pacific Properties, we regularly work with clients and trusted intermediaries on 1031 exchanges. By offering a pipeline of newly constructed, turnkey single-family rentals, we provide high-quality replacement properties that meet IRS requirements while supporting investors’ long-term financial goals.
