There are various ways to acquire hotel property and when selling a hotel, it’s possible to defer capital gains taxes with a 1031 exchange program. At NewGen Advisory, our team of experienced advisors work with many hotel investors reinvesting in another property through 1031 exchanges. Our partnership with JTC Americas, a qualified intermediary, adds additional value and expertise when investing in hotel property through a 1031 exchange.
1031 Exchange Process
The Basics of 1031
We’ve prepared simple documents to explain how the 1031 exchange program works and how to determine if it’s right for you.
how to get started
In order to participate in a 1031 exchange, you’ll need a property you plan to sell, a replacement property, and a Qualified Intermediary. However, you don’t need to have all these things already in order to get started. We have a history of working with JTC Americas, who can serve as your Qualified Intermediary. JTC has decades of experience with 1031 exchanges, and wrote a set of best practices that is now the industry standard.
There are two basic types of 1031 exchange:
This is where you sell your current property, then find a replacement property to purchase with the proceeds.
First find a new property to purchase, then sell your current property within the required time frame.
The process is slightly different for each type of 1031 exchange. Your first step is to identify which method best describes your current situation, and provide your information so we can help you get started. Fill out one of the following worksheets with as much information as you’re able to currently provide. Once you’re done, just click the “Submit form” button at the bottom of the document and we’ll be in touch!
If you're performing a forward exchange...
If you're performing a reverse exchange...
If you have a hotel you would like a valuation on or are interested in our list of hotels for sale to meet your 1031 exchange needs, contact a NewGen Advisory specialist below.
For specific 1031 exchange questions, our colleagues at JTC Americas are happy to talk with you. Click the JTC Americas button below.
Answers to common Questions
A "like-kind" property can refer to any real property purchased for business or rental purposes, and the replacement property does not necessarily have to be exactly the same in terms of usage, housing type, or value.
The replacement property must be found within 45 days and purchased within 180 days.
Anyone selling an investment property who plans to purchase a replacement property can qualify for 1031. There are specific rules regarding use of the property and when it must be purchased, but as of now there are no limits based on an individual’s income (though this may change in the future).
he Qualified Intermediary holds the proceeds from the initial sale until the purchase of the replacement property. A QI is required for all 1031 transactions.
1031 Exchange Program Resources
Let’s 1031: All You Need to Know About a 1031 Exchange and It’s Benefits for Hotel Investors
1031 exchange is not a mere tax bypass strategy. It’s...Read More
A Guide to a 1031 DST and the Hotel Industry
The strategic swap of business properties is a useful way...Read More
NewGen Advisory completes 1031 exchange transaction in 30 days
NewGen Advisory is pleased to announce the closing of a...Read More
Introduction to 1031 Exchange & How Hotel Investors Can Benefit
The process of investing in a hotel provides various investment...Read More