Stirling Wealth Management 1031 EXCHANGE OVERVIEW The 1031 is a "like-kind" exchange allowing you to sell one investment property and defer your capital gains-so long as you invest the proceeds (relatively quickly) in another investment property. If you are a real estate investor, a 1031 exchange may be worth leveraging if you're selling a property (not your primary residence) and looking to reinvest in another. RULES OF THE ROAD A key rule about 1031 exchanges is that they're generally only for business or investment properties. Property for personal use, like your home or a vacation house, typically doesn't count. The rules surrounding a 1031 exchange can be complex and must be followed exactly, or you'll lose your tax deferral benefit so it's important that you speak with a qualified professional. Like other types of assets, you can hold on to your investment and defer capital gains, potentially for decades. In order to reap the tax benefits of a 1031 exchange, there are a number of rules which must be followed. Specifically: The replacement property should be of equal or greater value to the property being sold or "exchanged." The titleholder must be the same on the property being sold and on the new property. The property owner has 45 days to identify up to three potential properties of like-kind after closing on the first property. The property owner must give capital gains to a "qualified intermediary" who serves as an escrowee for the sale proceeds. The qualified intermediary holds the funds in escrow for you until the exchange is complete (assuming the sale and the purchase don't take place simultaneously). The replacement property must be received, and the exchange completed, no later than 180 days after the sale of the exchange property. Lastly, you'll likely need to file IRS Form 8824 with your tax return. This form is where you describe the properties, provide a timeline, explain who was involved, and detail the transaction. IMPORTANT CONSIDERATIONS It's important to remember, you still have to pay tax on the sale, just later. A 1031 exchange doesn't make capital gains tax go away; it just postpones it. A capital gains tax bill will come due at some point, so you'll want to work with your Financial Advisor and tax professional to prepare accordingly. In the event you are not interested in purchasing an alternate investment property directly, Janney offers 1031 exchange solutions via Ares & JLL. For additional information, visit: Like-Kind Exchanges - Real Estate Tax Tips | Internal Revenue Service (irs.gov) WORKING WITH JANNEY Depending on your financial needs and personal preferences, as well as the fees and costs associated with those services, you may opt to engage in a brokerage relationship, an advisory relationship, or a combination of both. Each time you open an account, we will make recommendations on which type of relationship is in your best interest based on the information you provide when you complete or update your client profile. If you engage in a brokerage relationship, you will buy and sell securities on a transaction basis and pay a commission for these services. Our recommendations for the purchase and sale of securities will be based on what is in your best interest and reflect reasonably available alternatives at that time. If you engage in an advisory relationship, you will pay an asset-based fee, which encompasses, among other things, a defined investment strategy, ongoing monitoring, and performance reporting. Your Financial Advisor will serve in a fiduciary capacity for your advisory relationships. By establishing a relationship with us, we can build a tailored financial plan and make recommendations about solutions that are aligned with your best interest and unique needs, goals, and preferences. Contact us today to discuss how we can put a plan in place designed to help you reach your financial goals. STIRLING WEALTH MANAGEMENT at Janney Montgomery Scott LLC Janney Douglas W. Stirling | EVP/Wealth Management, Financial Advisor W. Wallace Danforth | VP/Wealth Management, Financial Advisor Joe Kennedy | Financial Advisor Stirling Wealth Management at Janney Montgomery Scott LLC 2200 Georgetown Drive, Suite 400, Sewickley, PA 15143 www.stirlingwealth management.com | 724.934.2953 Janney Montgomery Scott LLC Financial Advisors are available to discuss all considerations and risks involved with various products and strategies presented. We will be happy to provide a prospectus, when available, and other information upon request. Janney Montgomery Scott LLC, its affiliates, and its employees are not in the business of providing tax, regulatory, accounting, or legal advice. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any taxpayer for the purpose of avoiding tax penalties. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor. Janney Montgomery Scott LLC is a member of the New York Stock Exchange, Financial Industry Regulatory Authority and the Securities Investor Protection Corporation. For more information about Janney, please see Janney's Relationship Summary (Form CRS) on www.janney.com/crs which details all material facts about the scope and terms of our relationship with you and any potential conflicts of interest. © JANNEY MONTGOMERY SCOTT LLC MEMBER: NYSE, FINRA, SIPC REF. 2010400-0625 adno=380587 Stirling Wealth Management 1031 EXCHANGE OVERVIEW The 1031 is a " like - kind " exchange allowing you to sell one investment property and defer your capital gains - so long as you invest the proceeds ( relatively quickly ) in another investment property . If you are a real estate investor , a 1031 exchange may be worth leveraging if you're selling a property ( not your primary residence ) and looking to reinvest in another . RULES OF THE ROAD A key rule about 1031 exchanges is that they're generally only for business or investment properties . Property for personal use , like your home or a vacation house , typically doesn't count . The rules surrounding a 1031 exchange can be complex and must be followed exactly , or you'll lose your tax deferral benefit so it's important that you speak with a qualified professional . Like other types of assets , you can hold on to your investment and defer capital gains , potentially for decades . In order to reap the tax benefits of a 1031 exchange , there are a number of rules which must be followed . Specifically : The replacement property should be of equal or greater value to the property being sold or " exchanged . " The titleholder must be the same on the property being sold and on the new property . The property owner has 45 days to identify up to three potential properties of like - kind after closing on the first property . The property owner must give capital gains to a " qualified intermediary " who serves as an escrowee for the sale proceeds . The qualified intermediary holds the funds in escrow for you until the exchange is complete ( assuming the sale and the purchase don't take place simultaneously ) . The replacement property must be received , and the exchange completed , no later than 180 days after the sale of the exchange property . Lastly , you'll likely need to file IRS Form 8824 with your tax return . This form is where you describe the properties , provide a timeline , explain who was involved , and detail the transaction . IMPORTANT CONSIDERATIONS It's important to remember , you still have to pay tax on the sale , just later . A 1031 exchange doesn't make capital gains tax go away ; it just postpones it . A capital gains tax bill will come due at some point , so you'll want to work with your Financial Advisor and tax professional to prepare accordingly . In the event you are not interested in purchasing an alternate investment property directly , Janney offers 1031 exchange solutions via Ares & JLL . For additional information , visit : Like - Kind Exchanges - Real Estate Tax Tips | Internal Revenue Service ( irs.gov ) WORKING WITH JANNEY Depending on your financial needs and personal preferences , as well as the fees and costs associated with those services , you may opt to engage in a brokerage relationship , an advisory relationship , or a combination of both . Each time you open an account , we will make recommendations on which type of relationship is in your best interest based on the information you provide when you complete or update your client profile . If you engage in a brokerage relationship , you will buy and sell securities on a transaction basis and pay a commission for these services . Our recommendations for the purchase and sale of securities will be based on what is in your best interest and reflect reasonably available alternatives at that time . If you engage in an advisory relationship , you will pay an asset - based fee , which encompasses , among other things , a defined investment strategy , ongoing monitoring , and performance reporting . Your Financial Advisor will serve in a fiduciary capacity for your advisory relationships . By establishing a relationship with us , we can build a tailored financial plan and make recommendations about solutions that are aligned with your best interest and unique needs , goals , and preferences . Contact us today to discuss how we can put a plan in place designed to help you reach your financial goals . STIRLING WEALTH MANAGEMENT at Janney Montgomery Scott LLC Janney Douglas W. Stirling | EVP / Wealth Management , Financial Advisor W. Wallace Danforth | VP / Wealth Management , Financial Advisor Joe Kennedy | Financial Advisor Stirling Wealth Management at Janney Montgomery Scott LLC 2200 Georgetown Drive , Suite 400 , Sewickley , PA 15143 www.stirlingwealth management.com | 724.934.2953 Janney Montgomery Scott LLC Financial Advisors are available to discuss all considerations and risks involved with various products and strategies presented . We will be happy to provide a prospectus , when available , and other information upon request . Janney Montgomery Scott LLC , its affiliates , and its employees are not in the business of providing tax , regulatory , accounting , or legal advice . These materials and any tax - related statements are not intended or written to be used , and cannot be used or relied upon , by any taxpayer for the purpose of avoiding tax penalties . Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor . Janney Montgomery Scott LLC is a member of the New York Stock Exchange , Financial Industry Regulatory Authority and the Securities Investor Protection Corporation . For more information about Janney , please see Janney's Relationship Summary ( Form CRS ) on www.janney.com/crs which details all material facts about the scope and terms of our relationship with you and any potential conflicts of interest . © JANNEY MONTGOMERY SCOTT LLC MEMBER : NYSE , FINRA , SIPC REF . 2010400-0625 adno = 380587