A US tax provision allowing investors to defer capital gains taxes by reinvesting sale proceeds into a like-kind property.
Named after Section 1031 of the Internal Revenue Code, a 1031 exchange lets US real estate investors sell an investment property and reinvest the proceeds into another like-kind property without immediately paying capital gains tax. This deferral can be repeated indefinitely, allowing investors to build wealth more efficiently. Strict rules govern timing, identification, and qualified intermediaries.
You sell a rental property for $400,000 with a $150,000 capital gain. Through a 1031 exchange, you reinvest the entire $400,000 into a new $500,000 rental property within the required timeline. You defer paying tax on the $150,000 gain, keeping that money working in real estate instead of going to the IRS.
Richify automatically calculates 1031 exchange and other key real estate metrics for every property in your portfolio. Instead of plugging numbers into spreadsheets, you get instant analysis with built-in AI-powered insights to help you spot trends and opportunities across your holdings.
A tax deduction that lets real estate investors write off the wear and tear of an income-producing property over time.
The increase in a property's market value over time.
The estimated market value of a property after planned renovations and repairs are completed.
The process of determining a property's market value using one or more standardized methods.
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