1031 Exchange: Defer Capital Gains Tax With Arizona Commercial Real Estate
A 1031 Exchange may let qualified investors defer capital gains taxes. This applies when you sell an investment property and reinvest in another qualifying real estate asset.
As a result, more of your capital may stay invested instead of going to taxes. That capital can keep working for you in commercial real estate.
Free 1031 Exchange Guide
1031 Exchange Strategies for Commercial Real Estate Investors
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- How 1031 Exchanges work
- Common investor mistakes
- Important IRS timelines
- Commercial real estate opportunities
- How to evaluate replacement properties
Why Investors Use 1031 Exchanges
Why consider a 1031 Exchange?
Many investors spend years building equity in investment properties. Then, when they sell, they face significant tax liabilities.
Defer Capital Gains Taxes
For example, For example, For example, For example, For example, a properly structured exchange may help qualified investors defer taxable gains.
Preserve More Capital
More of your capital may stay invested instead of going to taxes at sale.
Upgrade Into Larger Assets
Often, investors upgrade from one property into larger, more strategic assets.
Diversify Asset Types
In addition, In addition, In addition, a sale can open the door to new commercial real estate categories.
How A 1031 Exchange Works
How the process works
A general overview of the exchange sequence. Requirements are strict, so investors should coordinate with qualified professionals before proceeding.
Sell Your Investment Property
Complete the sale of an eligible investment property.
Identify Replacement Property
IRS guidelines generally require you to identify replacement properties within 45 days.
Complete the Exchange
You must generally acquire the replacement property within 180 days.
Continue Growing Wealth
Your capital stays invested in real estate, while you potentially defer capital gains taxes.
Potential 1031 Exchange Opportunities
Explore Arizona commercial real estate replacement assets.
Retail Shopping Centers
Income-producing neighborhood retail centers with long-term tenant demand.
Our current deals - click to view
RV & Boat Storage
One of the fastest-growing alternative real estate sectors driven by increasing recreational vehicle ownership.
Our current deals - click to view
Industrial Flex Space
Flexible warehouse and industrial properties serving local businesses.
Our current deals - click to view
Land Acquisitions
Strategic land positioned for future appreciation and development potential.
Our current deals - click to view
Hospitality
Hospitality assets where brand, guest experience, and smart cost control drive performance.
Our current deals - click to view
Why Awesome ROI
Why investors choose Awesome ROI
Unlike many investment platforms, Awesome ROI doesn't just list deals. We actively acquire, operate, and manage every asset.
Hands-On Management
We are operators first and investors second.
Arizona-Focused Strategy
We focus on one of America's strongest growth markets.
Diversified Assets
Opportunities may include retail plazas, RV storage, and flex warehouses. Other options include commercial land, operating businesses, and distribution.
Experienced Team
Our team evaluates, acquires, improves, and manages every asset for long-term value.
Why Commercial Real Estate?
Commercial real estate has long-term investor appeal.
Commercial real estate has long been a preferred asset class. In fact, investors turn to it for income, appreciation, inflation protection, and diversification.
Monthly Cash Flow
Potential recurring income from tenants and operations.
Appreciation Potential
Growth in asset value over time.
Inflation Protection
Commercial rents often adjust with inflationary environments.
Tangible Assets
You own real, physical property not just a stock certificate.
Portfolio Diversification
Reduced dependence on stock market performance.
Who Is This For?
Is a 1031 Exchange right for you?
This strategy may be a fit if you own investment property. For example, it's worth exploring if you want tax deferral or passive income. It may also fit if you're seeking commercial real estate exposure or diversification.
- Own investment property
- Are considering selling real estate
- Want to defer capital gains taxes
- Seek passive income opportunities
- Want exposure to commercial real estate
- Desire portfolio diversification
- Want to preserve more investment capital
A consultation with qualified tax and legal professionals is always recommended before making any investment decisions.
Example Scenario
Example 1031 Exchange scenario
Illustrative example only. Individual circumstances vary.
Traditional Sale
Property Sale Price: $1,000,000
Capital Gains Taxes & Recapture: Potentially significant
Remaining Capital: Reduced
1031 Exchange
Property Sale Price: $1,000,000
Potential Tax Deferral: Yes
Capital Reinvested: Up to full exchange value
Potential Benefit: More capital working toward future growth
Frequently Asked Questions
Common 1031 Exchange questions.
Click each question to open the answer.
Ready To Explore Your 1031 Exchange Options?
Schedule your complimentary consultation today.
Planning to sell an investment property? Let's talk about Arizona commercial real estate opportunities — and the strategies that might fit your goals.