What types of properties qualify for a 1031 exchange*?

To qualify for a 1031 exchange, the properties involved must be considered "like-kind." This generally means that real estate must be exchanged for real estate, and personal property must be exchanged for personal property of the same nature or character. There is some flexibility within these categories. For example, an apartment building can be exchanged for a strip mall, or a piece of raw land can be exchanged for a rental property.

Can I do a partial 1031 exchange*?

Yes, it is possible to do a partial 1031 exchange, where only a portion of the proceeds from the sale of the relinquished property is transferred in the replacement property. In this case, the seller would have to pay capital gains taxes on the portion of the proceeds that were not used for the new property purchase. The portion utilized through the 1031 exchange would still benefit from tax deferral.

What is not allowed in a 1031 Exchange*?

According to IRS rules, certain transactions and property types are not allowed in a 1031 exchange. These include personal use properties like primary residences, stocks and bonds, dealer properties intended for sale, foreign real estate, personal property like furniture, and property acquired with immediate resale intent. Consulting a tax professional is recommended to understand eligibility and compliance requirements.

How would the title be held under a fractioned ownership?

In most cases the tittle would be held as Tenant in Common (TIC). TIC is a legal ownership structure where multiple investors may own an undivided interest in a real property asset. Owners can hold unequal shares and they can sell their shares independently from other tenants.

1031 Exchange for Vacation Homes

Discover a New Dimension of 1031 Exchange with Fraxioned

Transform your 1031 Exchanges with Fractionalization and Amplify Your Conversions

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Our 1031 Model

Transcending Traditional 1031 Exchanges

Fraxioned emerges as a game-changer for 1031 Exchanges, offering a unique and innovative Fractionalized solution — empowering buyers and sellers to unlock unparalleled real estate opportunities.

Unlike the traditional 1031 exchange, where you sell a property and acquire another, Fraxioned offers a new dimension. The Fraxioned 1031 Exchange model lets your clients transfer their proceeds into luxury vacation homes at affordable costs - offering a wonderful lifestyle experience.

Our innovative Fraxioned Ownership Model enables your clients to co-own premium properties, enjoy luxurious vacations, and generate rental revenue when unused.

Through our co-ownership model, we make high-end real estate more accessible, requiring less capital compared to traditional home purchases.
We help your clients diversify their holdings, maximize returns, and experience the benefits of owning premium vacation homes.

Fractional Ownership - An Innovative Real Estate Model

With Fraxioned, your clients are introduced to a unique and innovative ownership model: Fractional Ownership. By leveraging our 1031 exchange solutions, your clients can unlock fractional ownership of premium vacation properties in some of the most sought-after destinations.

Rather than being limited to a single property, clients can diversify their purchases across different locations, mitigating risk and catering to their unique travel preferences.
Our properties offer significant potential for appreciation and rental revenue, making them perfect for clients seeking to reinvest their proceeds while maintaining compliance with 1031 regulations.

1031 Exchange with Fraxioned Pitch 59

Partner with Fraxioned and Revolutionize your Real Estate Portfolio

We understand the importance of providing clients with exceptional real estate opportunities. Hence, we're thrilled to extend our partnership to Qualified Intermediaries like you to introduce our offerings to your client base and offer a hassle-free 1031 exchange.

By partnering with Fraxioned, you'll receive a 2% commission on every successful sale and additional incentives tailored for our valued partners*.

Together, we can unlock lucrative opportunities for your clients, allowing them to co-own luxurious properties, generate rental revenue, and diversify their real estate holdings like never before.
Our current collaboration with my1031 Pros as a QI has been a resounding success, and we're eager to expand our network across the US.

Learn more about 1031 Exchange

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Fraxioned Advantages

Real Estate Holdings Diversification

Elevated Lifestyle

Rental Revenue

Tax-Deferred Growth

Professional Management

Seamless 1031 Exchange

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Diversify Your Real Estate Portfolio with 1031 Exchanges and Fraxioned

Diversify Your Real Estate Holdings With 1031 Exchanges And Fraxioned

In the ever-evolving landscape of real estate investing, real estate investors are constantly seeking innovative strategies to maximize their returns, diversify their portfolios, and unlock new opportunities.

Frequently Asked Questions on 1031

1031 Exchange

*Fraxioned Corp and its affiliates do not provide tax, legal, or accounting advice. These FAQs are for informational purposes only, and are not intended to provide and should not be relied on for, tax, legal, or accounting advice. Fraxioned makes no representations or guarantees regarding the economic benefits to be derived from the purchase or resale of the Interest or rental of the Property.

1031 Exchange

*Fraxioned Corp and its affiliates do not provide tax, legal, or accounting advice. These FAQs are for informational purposes only, and are not intended to provide and should not be relied on for, tax, legal, or accounting advice. Fraxioned makes no representations or guarantees regarding the economic benefits to be derived from the purchase or resale of the Interest or rental of the Property.

1031 Exchange

*Fraxioned Corp and its affiliates do not provide tax, legal, or accounting advice. These FAQs are for informational purposes only, and are not intended to provide and should not be relied on for, tax, legal, or accounting advice. Fraxioned makes no representations or guarantees regarding the economic benefits to be derived from the purchase or resale of the Interest or rental of the Property.

1031 Exchange

*Fraxioned Corp and its affiliates do not provide tax, legal, or accounting advice. These FAQs are for informational purposes only, and are not intended to provide and should not be relied on for, tax, legal, or accounting advice. Fraxioned makes no representations or guarantees regarding the economic benefits to be derived from the purchase or resale of the Interest or rental of the Property.