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JARGON MADE SIMPLE SERIES

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JARGON MADE SIMPLE SERIES

 
Real estate can feel overwhelming with all the acronyms and industry terms. Our Jargon Made Simple series breaks down complex concepts into clear, everyday language, so whether you’re buying or selling in Bend and Central Oregon, you can make confident decisions without the confusion.
What is a 1031 Exchange?
If you’re exploring real estate investing in Bend, Oregon or Central Oregon, you may have heard the term 1031 Exchange. It might sound complicated, but it’s actually a powerful tool for investors looking to grow their portfolios while deferring taxes.
 
A 1031 Exchange is a tax-deferral strategy that allows you to sell an investment property and reinvest the proceeds into another “like-kind” property without immediately paying capital gains taxes. Instead of losing a portion of your profit to taxes, you can roll the full amount into your next investment, keeping your money working for you.
 
How it works: Sell your current property, identify one or more replacement properties within 45 days, and close on a new property within 180 days. The replacement property must be another investment property like a rental home, multifamily unit, or commercial space and the funds are held by a Qualified Intermediary to comply with IRS rules.
 
For investors in Bend and Central Oregon, a 1031 Exchange is ideal for upgrading to higher-value properties, expanding rental portfolios, or diversifying into commercial real estate, all while deferring capital gains taxes.
 
Even for first-time buyers, understanding a 1031 Exchange helps you see the strategies savvy investors use. The more you know, the better equipped you are to make smart decisions in the Bend, Oregon real estate market.
 
Ask for more details, and stay tuned for more real estate term breakdowns!
 
All information deemed reliable but not guaranteed. If your property is listed with a real estate broker, this is not a solicitation of brokerage services. Laura Blossey, License 201204340, Avenir Realty.
 
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