1031 Exchange Attorney in Hidalgo County, Texas

At Ortega Law, we specialize in 1031 exchanges for property owners and investors in the Rio Grande Valley, including Hidalgo County, Texas. Whether you own rental homes, commercial buildings, or agricultural land, our firm provides the expertise you need to successfully defer capital gains taxes and maximize your investment potential.

What Can Be Exchanged in a 1031?

Under Section 1031 of the Internal Revenue Code, property used for investment or business purposes can be exchanged for other "like-kind" property to defer capital gains taxes. This includes:

• Rental Properties: Single-family homes, duplexes, and apartment complexes.
• Commercial Real Estate: Office buildings, retail spaces, and industrial properties.
• Agricultural Land: Farms, ranches, and vacant land suitable for development.
• Rights and Easements: Conservation easements, water rights, mineral rights, and even long-term leases (30+ years).

The term "like-kind" is broad for real estate, meaning your replacement property doesn’t need to be identical—just another property held for business or investment purposes.

Why Consider a 1031 Exchange?

A 1031 exchange allows you to defer capital gains taxes, which can free up more capital to reinvest. This is especially advantageous for:

• Preserving Equity: Avoid losing a significant portion of your profits to taxes.
• Portfolio Growth: Upgrade or diversify your holdings without an immediate tax hit.
• Depreciation Recapture: Defer taxes on gains associated with older properties.

Key Considerations for 1031 Exchanges

Recent tax law changes, such as the “Tax Cuts and Jobs Act,” have eliminated personal property exchanges (e.g., vehicles or machinery), limiting 1031 exchanges to real property. However, the flexibility in real estate options still offers significant opportunities for investors.

Examples of unique exchange scenarios include:

• Duplexes: If you live in one side, the leased portion may still qualify.
• Home Offices: The business-use portion of a home can be eligible.
• Oil and Gas Interests: Royalties and working interests in proven properties may qualify.

Why Work with Ortega Law?

Navigating the strict deadlines and regulations of a 1031 exchange requires an experienced attorney. At Ortega Law, we provide:

• Property Eligibility Review: Ensuring your transaction complies with IRS guidelines.
• Strategic Guidance: Tailored advice to align with your goals.
• Documentation and Deadlines: Drafting and reviewing all necessary documents while managing critical timelines.
• Local Expertise: With deep knowledge of real estate law in Hidalgo County and the Rio Grande Valley, we provide unparalleled local insight.

Get Started with Ortega Law Today

If you’re considering a 1031 exchange, let us help you secure your investment's future. Contact Ortega Law in Alamo, Texas at (956) 300-1402 or schedule a free consultation through one of our contact forms. Together, we’ll navigate the complexities of a 1031 exchange and help you achieve your financial goals.