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.
Transform your 1031 Exchanges with Fractionalization and Amplify Your Conversions
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.
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.
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*.
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.
*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.
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.
*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.
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.
*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.
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.
*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.