A balanced exchange of single family rental investment property ensures that the taxpayer defers 100% of their taxes on capital gain and depreciation recapture. General requirements to achieve a balanced exchange:

1. Acquire a replacement property that is equal to or greater than the relinquished property
2. Reinvest all of the proceeds from the relinquished property in the replacement property

Incur debt on the replacement property that is equal to or greater than the debt on the replacement property or contribute cash to make up the deficiency.

If after learning a bit more about Balanced Exchanges you are curious to see how your current Investment Portfolio would benefit from performing a 1031, then I recommend signing up to receive a FREE 1031 Sizing from Conatus.

This sizing gives you info about the value of replacement properties you need to purchase and the amount of related debt on this purchase to fully defer your capital gains associated tax liability.

As an added benefit you will receive a comparison of your current income vs potential replacement property income that includes an assessment of income tax benefit between the
two.

The Conatus 1031 Sizing is your blueprint for how to maximize cash flow from trading your equity for a multiple on income.

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