What Is a 1031 Exchange?

A like-kind exchange that defers capital gains tax indefinitely.

Section 1031 of the IRS code allows you to sell an investment property and reinvest the proceeds into a "like-kind" replacement property — without paying capital gains tax at the time of sale. Done correctly, you defer 100% of your tax burden and continue compounding your equity.

It's not just a tax move. It's a wealth-building strategy that lets you upgrade properties, change markets, or transition into higher-performing assets without losing 25–30% of your equity to the IRS along the way.

Common 1031 Goals

Why owners exchange.

  • Trade up. Move from a 12-unit to a 50-unit while deferring tax.
  • Diversify markets. Sell a Chicago asset, buy in Indianapolis, Detroit, or Milwaukee.
  • Reduce hands-on management. Trade an active value-add for a stabilized cash-flow asset.
  • Transition into higher-performing markets. Move into asset classes with stronger fundamentals.
How It Works

How does a 1031 Exchange work?

Why Work With Us

Why work with AJ Commercial for your 1031 Exchange?

The Clock Doesn't Start Until You Decide

Talk to us first.

We'll walk through your situation, the 45/180-day clock, qualified intermediary selection, and what off-market replacement inventory we have right now.

Or Start Online

Tell us where you are in the process.

The 45-day clock doesn't start until you list. The earlier we know what you're holding and where you'd like to land, the more replacement options we can line up.