Defer Taxes. Reposition Capital. Execute a 1031 Exchange With Confidence.

For investors selling in — or moving capital into — New Jersey, we help you navigate like-kind 1031 exchanges end-to-end: timelines, identification strategy, due diligence, and acquisitions. Concierge guidance; data-driven search; seamless coordination with your Qualified Intermediary and counsel.

Elegant investment property exterior in New Jersey

 

How a 1031 Exchange Works

We bring clarity to complex timelines. From selling your relinquished property to acquiring your replacement, each step is planned with precision to maintain compliance and preserve your capital gains deferral.

  • Sell the Relinquished Property: Engage a Qualified Intermediary (QI) before closing; proceeds go directly to QI escrow.
  • 45-Day Identification: Identify up to 3 properties (or follow 200%/95% rules) within the first 45 days.
  • 180-Day Acquisition: Complete the purchase of one or more identified properties within 180 days.
  • Compliance: Keep organized records for your CPA and QI for IRS and state filings.

This content is general information, not tax or legal advice. Always consult a licensed professional for your situation.

Prefer a one-page reference? Download the 1031 Guide.

 

Download: The NJ Investor’s 1031 Exchange Guide

Clear, practical steps, checklists, and a fillable identification worksheet. Use it to brief your partners and stay on schedule.

  • 45/180-day tracker and key dates
  • Identification rules (3-property / 200% / 95%)
  • Due diligence checklist
  • Glossary: boot, basis, depreciation, recapture
 

Real-World Example: From 3-Family to 6-Unit

Situation

Seller held a 3-family for 11 years. Rising taxes and maintenance reduced yield. Objective: convert equity into higher cash-on-cash with less capex risk.

Approach

  • Coordinated QI setup pre-sale; identified 3 replacements in 21 days.
  • Selected a renovated 6-unit with stable taxes and separate utilities.
  • Negotiated repairs credit and tax abatement confirmation; closed on day 134.

Outcome

  • Deferred capital gains via 1031; improved DSCR and cash-on-cash by ~2.1%.
  • Reduced management time with professional management.
 

© Prominent Properties Sotheby’s International Realty. All rights reserved. Information is for educational purposes only and not tax or legal advice. Consult a licensed CPA/attorney and a Qualified Intermediary. Each office independently owned and operated.