Real Estate Investment Resources

1031 Exchanges for Charlottesville Properties

If you're buying investment property in the Charlottesville area, you have the opportunity to defer federal and state capital gains taxes with a Section 1031 Exchange. 

A 1031 Exchange allows you to exchange similar ("like kind") properties, either with a simultaneous swap or a deferred exchange, and postpone paying taxes on your capital gains if you reinvest the money in the similar property. 

Properties That Qualify

In order for your transaction to qualify as a 1031 Exchange, the property you are buying and the property you are selling have to meet certain requirements:

  • both properties must be used primarily for investment
  • both properties need to be similar enough to be considered "like kind"
  • the property you are buying must close within a certain time limit

In Charlottesville, the real estate options that can be held for investment and can apply for 1031 Exchanges include rental property, apartments, industrial property, office buildings, and unimproved land. You can have your personal property qualify as a "like-kind" exchange, but the rules are more restrictive than for investment property. 

Two Time Limits to Keep in Mind

Section 1031 Exchange transactions have specific requirements in terms of deadlines and filing the proper paperwork. To avoid paying capital gains tax, you need to meet two timelines:

  • 45 days from the time you sell your property to the time you identify a potential replacement property, which must be submitted in writing to the person involved in the exchange. 
  • 180 days from the time you sell your property to the time you complete the "like-kind" exchange.

Easily Search for Charlottesville Area Property

We've made it easier for you to search for investment properties that meet your criteria. Use our advanced search feature to find a property in your desired city and price range, or search through the Charlottesville area listings by price

Need assistance with your search? Let's work together to find the best investment property for you. Fill in your requirements in The Chase Team Home Finder Assistant, and we will email you when properties that fit your interests become available.  

Let Us Help with Your 1031 Exchange

While all of this information is general to 1031 Exchanges, there can be special rules and other complications surrounding these transactions. But don't worry, you don't have to navigate this real estate transaction alone. Our team of trusted real estate professionals can answer any questions and help you find the perfect investment property. 

Contact us today at (434) 296-9860 or and we can get started. 

Charlottesville, VA Real Estate Resources