• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Danny Murphy & Associates

Homes for Sale in Orange County, CA

Find Danny Murphy & Associates:

  • Facebook
  • TikTok
  • YouTube
  • LinkedIn
  • Pinterest

Homes seen on this website may be for sale, in escrow, or sold. Please contact us today to learn about our most recent inventory, including homes not yet on the market.

  • Homes for Sale in Orange County, CA
  • Reviews of Danny Murphy & Associates
    • Facebook Reviews
    • Google Reviews
    • Zillow Reviews
  • What’s Your Home Worth?
  • Contact Danny
  • About
You are here: Home / Real Estate Laws / Tax Savings And Benefits Of A 1031 Exchange

Tax Savings And Benefits Of A 1031 Exchange

March 30, 2018

As we are wrapping up tax season I thought it would be appropriate to share some tips and tricks for putting your real estate to work for you for some tax savings and benefits with a 1031 Exchange.

As we are wrapping up tax season I thought it would be appropriate to share some tips and tricks for putting your real estate to work for you for some tax savings and benefits with a 1031 Exchange. 

There are few situations where this can be beneficial. To determine if these tax savings and benefits apply to you, answer any of these following questions:

  • Do you own condos, single family homes, or multi-units? Do you own raw land or commercial property?
  • Have you ever wanted to sell an existing investment asset and buy something different?
  • Would you like to consolidate several investment properties into a more manageable asset?
  • Are you thinking of exchanging older properties for newer ones which require less maintenance?

If you answered yes to any of these questions you might quality for a 1031 Exchange which can have tax savings and benefits for your portfolio!

Tax Savings And Benefits Of A 1031 Exchange

There’s currently no limit to the number of times you can take advantage of a 1031 exchange which allows you to swap one business or asset for another!

You can use a 1031 Exchange to avoid cashing out and paying taxes on an investment.

Some things to remember: 

  • 1031 Exchanges are for investment and business properties only.
  • Personal property is not included in this category.
  • This means you can’t swap your primary residence for another one without paying taxes.
  • Each exchange must be similar but the rule is quite flexible. This means you can swap your investment properties for raw land, a strip mall, or even condos!

Delayed 1031 Exchanges | Third Party Exchanges

Many 1031 Exchanges are delayed exchanges where in you sell one piece of property to a 3rd party and then purchase a new property from another 3rd party. In that case there are some guidelines.

  • You must identify a 3rd party to help facilitate the exchange, usually deemed the middle man or the “qualified intermediary”.
  • Two time frames you must abide by are very strict: identifying properties you are considering and finalizing the sale of those properties.
  • You must identify 3 properties of equal or greater value to the asset being sold within 45 days of closing escrow on the previous investment property.
  • Next you must finalize the sale on one or more of the three properties you listed previously within 180 days after the closing date on the previous investment property.

If you have cash left over after the exchange is said and done, this is called “boot”, that amount is subject to taxes. Plan accordingly!

There are a lot of other rules and regulations that govern this topic which are not covered in this post or in the video below. I am not an accountant or an attorney so you should consult both before making any decisions.

If you are in need of assistance with buying, selling, or finding appropriate properties I’m available at 949-413-6967 anytime!

Check out this video about Tax Savings & Benefits of a 1031 Exchange:

Filed Under: Real Estate Laws, Real Estate Tips

Primary Sidebar

Danny Murphy & Associates

With more than 15 years of Southern California Real Estate experience, Danny is an expert in his field.

Looking to sell your home? Call Danny today to see how our industry leading marketing and exceptional negotiating skills can help you get more for your more.
(949) 413-6967
Danny@TheSoCalLife.com

dannyandassociates

Surfer 🏄 #HuntingtonBeach Local 🌊 #OrangeCounty Realtor | #FirstTeamRealEstate 🏡 Let me help you find your dream home! #hb #CostaMesa #NewportBeach

Basement homes don't come up too often here in OC, Basement homes don't come up too often here in OC, but we can find them when they do!

If you're looking for a home with an extra living space, DM us and we'll start the search!

#livinginorangecountycalifornia #orangecountyhomes #ocrealestate #orangecountyrealtor #ochomes #orangecounty #orangecountyhomesforsale #liveintheoc #ochomesforsale #ocrealtor #ocliving #orangecountyhousingmarket #oclifestyle #orangecountylistings  #realtor  #ochomebuyers #oc #surfcityca #huntingtonbeach #orangecounty  #california #surfcityusa #surfcity #socal #hb #beachlife #beach #hblife #huntingtonbeachbusiness #hbrealtor
SOLD!! 219 Chaumont Circle, Foothill Ranch #orang SOLD!!
219 Chaumont Circle, Foothill Ranch

#orangecountyproperties  #ochomebuying #ochousehunting #homesforsale #ochousingmarket #socalhomes #socalrealestate #orangecountycalifornia #orangecountyrealestate #orangecountyhomes #ocrealestate #ochomes #orangecounty #orangecountyhomesforsale #ochomesforsale #orangecountylistings  #ochomebuyers #oc
The real estate biz never stops, not during vacati The real estate biz never stops, not during vacation and definitely not on weekends and evenings. Check out this funny video depicting a Day in the Life of Danny Murphy

#realestateinvesting #realestategoals #realestateexpert #realtorlife #realestateinvestor #realestateexperts #realestatenews #realestatemarket #househunting #homebuying #realestateforsale #realestateagents #homeownership #realestatebroker #realestatemarketing #realestatesales #realestateagency #firsttimehomebuyer #realestateinvestment #realtorsofinstagram #realestateprofessional #realestateblog
Jazz anyone?!?!? Jazz anyone?!?!?
Buying and selling real estate is a big deal. It's Buying and selling real estate is a big deal. It's a big commitment. Watch Danny's video to learn more about the buying process and why 98% of buyers have a buyer's agent! There is usually large sums of money involved in the process. Sometimes it can be quite emotional, stressful and confusing. There are lots of contracts, forms and addenda to complete or/or review. Many decisions to be made about what to buy and where. Am I paying a reasonable price, and getting reasonable terms besides just the price. How do I make a strong and competitive offer without overpaying? How is my earnest money deposit protected? Maybe you have unique financing needs or just want a second opinion from a reputable lender? What inspections should we do and why? Based upon inspection results, do we ask for repairs or a credit, maybe a price reduction or a combination of some or all? What if during escrow there is an issue with title, or you are having a hard time obtaining homeowner's insurance (as that is a BIG challenge these days), who do you go to? Now it's finally time to move! Maybe you need a good moving company, or you want to do some repairs and improvements after you move in. Who has a good roofer, electrician, plumber, general contractor, painter, flooring and window person, etc? You get the point.....there are a LOT of things to consider, account for and do when buying a home and that is where an experienced and highly skilled real estate agent comes in and helps you through the process. Please reach out to us anytime for all of your real estate questions and needs. We're here to help!

#realestatetips #realestate #realestateagent #realtor #realestatelife #realestateadvice #realestateexpert #realtorlife #realestateexperts #realestatemarket #househunting #realestateagents  #realestatebroker #realestatemarketing #realestatesales #realestateagency #realtorsofinstagram #realestateprofessional #homeseller #seller
Is your little one's artwork taking over the fridg Is your little one's artwork taking over the fridge (and everywhere else!)? Maybe it's time to find a home that grows with your family! 

Southern California has amazing options for families who need room to spread out. I can help you find your dream home in a family-friendly neighborhood!

#orangecountyproperties  #ochomebuying #ochousehunting #luxuryrealestate #isellhomesoc #ochomeseach #dreamhome #homesforsale #realestateagent #ochousingmarket #socalhomes #socalrealestate #movingtoorangecounty #orangecountycalifornia #orangecountyhousingmarket #orangecountyrealestate #livinginorangecounty #livinginorangecountycalifornia #orangecountyhomes #ocrealestate #orangecountyrealtor #ochomes #orangecounty #orangecountyhomesforsale #liveintheoc #ochomesforsale #ocrealtor #ocliving
Perhaps you have heard, but if you haven't, there Perhaps you have heard, but if you haven't, there have been some big changes in how real estate agents MUST conduct their business with all clients and potential clients. Watch Danny's video to learn about the mandatory forms that consumers will be asked to sign before seeing properties for sale or making offers. Please reach out to us anytime for all of your real estate questions and needs. We're here to help! 

#realestatetips #realestate #realestateagent #realtor #realestatelife #realestateadvice #realestateinvesting #realestategoals #realestateexpert #realtorlife #realestateinvestor #realestateexperts #realestatenews #realestatemarket #househunting #homebuying #realestateforsale #realestateagents #homeownership #realestatebroker #realestatemarketing #realestatesales #realestateagency #firsttimehomebuyer #realestateinvestment #realtorsofinstagram #realestateprofessional #realestateblog
Any guesses where we’re at? Any guesses where we’re at?
Follow on Instagram
 

Homes for Sale in Orange County:

Aliso Viejo
Anaheim
Costa Mesa
Fountain Valley
Huntington Beach
Irvine
Laguna Niguel
Lake Forest
Mission Viejo
Newport Beach
Orange
Orange County
Tustin
Villa Park
This information is based on information from the Association of Realtors/Multiple Listing as of the date the AOR/MLS data
was obtained and/or other sources. Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS.
The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.


Copyright © 2025 · Danny Murphy & Associates
 

Loading Comments...