What Qualifies as 1031 Investment Property

One of the most common misconceptions JJ Gorena of The Trey Group hears from San Antonio-area investors is about what property types actually qualify. "It cannot be your primary residence — that's another common misconception," Gorena explains. "It must be an investment property."

 

Qualifying properties include warehouses, retail space, and short-term or long-term rental property — common categories throughout San Antonio, New Braunfels, and Hill Country communities like Boerne and Comfort where vacation rentals and land holdings are common investment types. Gorena also notes that rental properties can be depreciated to help reduce both current and future taxes, a benefit worth discussing alongside the exchange itself with an agent who understands both the tax and real estate sides of the transaction.

Getting Started

If you own investment property and expect to sell within the next year, the right time to start planning a 1031 exchange is now, not after you've accepted an offer. Watch Episode 1 of "1031 Exchange, Explained" for a full walkthrough of the identification period.

Watch Episode 1 of "1031 Exchange, Explained": https://youtu.be/Kmbth-XiI50 

Schedule a consultation with JJ Gorena: https://calendly.com/treygroupcommercial/15min

JJ Gorena, The Trey Group Phone: 210-367-6024 Email: homes@thetreygroup.com