IRS Code Section 1031 and related regulations have been around since the early 1920s. The code allows for an individual or business entity to 'exchange' on or more pieces of business property, particularly real estate, for other business property, without paying Capital Gains Tax on the property disposed of. This allows an individual person or group of owners who have owned real estate through several years of appreciation to upgrade exchange, or partially cash out without losing a portion of his/her investment to capital gains tax. Section 1031 allows an owner managing a piece of property to 'exchange' it for a professionally managed property with a national tenant utilizing a triple net lease. This allows owners of vacant land to 'exchange' the land, with no tax consequence, for professionally managed property creating monthly cash flow! How many clients would like to get out of a piece of property, exchange up, improve their tenant mix, improve their grade of property, create more cash flow, all while not paying Capital Gains Tax and retaining the benefits of tax deductions and appreciation they have enjoyed for years.

In an 'Exchange' you actually sell the property to another buyer. There is rarely an actual exchange of properties. The resulting cash proceeds are exchanged for the new property.

• Exchanges are easily completed and the seller avoids paying 20%+ in capital gains tax.
• Avoid Capital Gains Tax
• Sellers can do a partial exchange if they desire to keep a portion of their proceeds. The non-exchanged portion is taxable.
• Keep a portion of the sales price
• Get out of Daily Property Management
• Acquired interest in replacement property creates cash flow each month on the amount invested.
• Create steady, monthly cash flow
• Owners share in the appreciation and tax benefits of continued real estate ownership.
• Continue the Benefits of Real Estate Ownership
• Earn more money for yourself
• Accountants, Attorneys and Real Estate Professionals protect themselves from litigation by explaining the potential benefits of doing a 1031 exchange versus an outright sale.
• Avoid Liability
• Owners become more willing to sell or list their property if they know there is an avenue to avoid tax and create cash flow.
• Acquired property is managed by nationwide management companies overseeing millions of dollars worth of property leased to investment grade tenants.

Investments, Taxes, Insurance, Retirement, Estate Planning... The list of financial concerns facing you today is seemingly endless. Each area is important individually, but managing them collectively is one of the most important factors in your overall financial success. To take advantage of all available options, you need two things: an understanding of which investment products are most appropriate for each situation and a relationship with a trusted team of investment professionals that have a clear understanding of your particular needs. At Concorde, our staff of Certified Public Accountants, Certified Financial Planners and Insurance Specialists work with you as a team to put quality service and objective advice first. Using our 50 years of combined experience, we can help you define your long-term investment objectives, then build a personalized investment portfolio designed to help you achieve them.