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Structured 1031 Exchange Advisory

Strategic guidance for capital preservation and tax-deferral through properly executed exchange transactions.

Designed for investors seeking portfolio optimization without immediate capital gains exposure.

Schedule Exchange Consultation:

CALL 305-890-9000

What does it consist of?

A 1031 Exchange (named for IRS Code Section 1031) allows real estate investors to defer capital gains taxes when selling an investment property, provided the proceeds are reinvested into a qualifying like-kind replacement property. Properly executed, a 1031 exchange lets you compound your portfolio’s growth without the tax drag of a taxable sale.

Critical timelines (IRS rules are strict):

  • 45-day identification window: From the sale closing date, you have 45 days to formally identify up to three potential replacement properties
  • 180-day closing window: You must close on the replacement property within 180 days of the original sale — including the 45-day identification period
  • Equal or greater value: The replacement property must be of equal or greater value than the relinquished property to defer 100% of the gain

Qualified Intermediary (QI) required: Sale proceeds must be held by an IRS-approved Qualified Intermediary — you cannot touch the funds. Glovenco coordinates the QI, identifies financing structures for the replacement property, and manages execution across both transactions.

Processed through Gloven Capital — These products are originated through Gloven Capital, Glovenco’s dedicated real estate capital division. You can also apply directly at glovencapital.com.

⭐ Advantages

  • Defer capital gains taxes — preserve full sale proceeds for reinvestment
  • Reposition your portfolio (e.g., sell multiple properties, buy one larger asset)
  • Consolidate or diversify holdings without a tax event
  • Potential to eliminate capital gains entirely through stepped-up basis at death
  • Structured financing through Gloven Capital ensures the replacement property closes within the 180-day window

⭐ Requirements

  • Relinquished property must qualify as investment or business-use real estate
  • Replacement property must be like-kind (broad definition under IRS rules)
  • Identify replacement property within 45 days of sale closing
  • Close on replacement property within 180 days of sale
  • Equal or greater value and equity to defer 100% of gain
  • All proceeds held by a Qualified Intermediary — no constructive receipt

Frequently Asked Questions:

What exactly is a 1031 Exchange?

A 1031 Exchange is a tax-deferral strategy under Section 1031 of the Internal Revenue Code that allows investors to sell an investment property and reinvest the proceeds into another qualifying property while deferring capital gains taxes.

To qualify, the transaction must follow strict IRS timelines and reinvestment rules. When properly structured, a 1031 Exchange enables investors to preserve equity, reposition portfolios, and compound long-term returns without immediate tax exposure.

What types of properties qualify for a 1031 exchange?

Qualifying properties must be held for investment or business purposes. This includes commercial real estate, rental properties, industrial assets, office buildings, retail centers, and certain land investments.

Primary residences and properties held primarily for resale (such as fix-and-flip inventory) do not qualify.

Replacement properties must be considered “like-kind,” which broadly applies to most real estate held for investment within the United States.

What happens if I don't reinvest all of the capital?

If the full proceeds from the sale are not reinvested into qualifying replacement property of equal or greater value, the portion not reinvested may be subject to capital gains tax. This taxable portion is commonly referred to as “boot.”

To fully defer capital gains taxes, investors must:

  • Reinvest all net sale proceeds

  • Acquire property of equal or greater value

  • Maintain or increase debt levels (or replace debt with cash)

Strategic structuring is essential to avoid unintended taxable exposure.

How long does it take to complete a 1031 Exchange?

A 1031 Exchange must follow two strict IRS timelines:

  • 45 days from the sale of the relinquished property to formally identify potential replacement properties.

  • 180 days from the sale to close on the replacement property.

These timelines run concurrently and cannot be extended under normal circumstances.

Proper planning before the sale is critical to ensure compliance and successful execution.

Let’s Talk About Your Structured 1031 Exchange

Tell us about your goals, and our team will structure the right financing solution for your deal.

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