A 1031 exchange lets Illinois real estate investors sell an investment property and reinvest the money into a new property. This lets them delay paying capital gains taxes. However, they need to follow specific rules about timing and the types of properties involved.
If you’re considering this strategy in 2026, our DuPage County, IL 1031 exchange lawyer can help you navigate the process correctly. Attorney McCormick at The McCormick Law Firm, LLC takes a guy-next-door approach that makes complicated legal topics like this easy to understand. Call today, and you’ll work directly with him throughout your transaction.
What Makes a 1031 Exchange Different From a Regular Sale?
You typically owe capital gains tax on any profit right away when you sell an investment property. Under 26 U.S.C. Section 1031, a properly structured exchange works differently. It allows you to delay this tax by reinvesting your proceeds into a new, similar investment property instead of simply cashing out.