Major Tax-Law Victory Protects 1031 Like-Kind Exchanges
Major Tax Law Victory:
1031 Like-Kind Exchanges Protected Under New Legislation
August 27, 2025
Among broad reaching provisions of recent legislation signed into law on July 4th, 2025, the One Big Beautiful Bill Act (OBBBA) permanently preserves 1031 like-kind exchanges and 721 UPREIT/tax-deferred transactions, providing commercial real estate investors with long-term certainty for property swaps and portfolio optimization.
This is a huge win for property owners who rely on 1031 Exchanges to defer capital gains taxes when trading properties. With renewed legislative support, this powerful tool remains intact as a reliable strategy—allowing seamless reinvestment into new assets without immediate tax liability.
At Lee & Associates South Florida, we connect clients with expert tax advisors who specialize in structuring compliant, high-impact 1031 Exchange strategies. Read on to discover how this law—and our Lee Connections network—can help you maximize your investment potential.
What Is a 1031 Exchange?
A 1031 like-kind exchange allows property owners to defer capital gains taxes when selling an investment property, provided they reinvest the proceeds into a similar or “like-kind” replacement property within the IRS’s established timelines and rules.
This deferral strategy enables investors to roll over equity gains, grow without erosion by taxes, and scale portfolios more efficiently over time.
Key Benefits of 1031 Exchange Preservation
- Tax-Deferred Portfolio Growth: Increase cash flow and optimize your portfolio by redeploying equity into value add assets that generate a greater overall return.
- Estate Planning & Wealth Transfer: Heirs receive a stepped-up basis, potentially eliminating accumulated capital gains taxes upon inheritance.
- Long‑Term CRE Strategy: Creates ability to shift portfolio and diversify into separate asset classes that may perform better over time, while also allowing you to press the rest button on depreciation and potentially qualify for bonus depreciation that can boost after tax returns.
- Protected Under OBBBA: The new law ensures continuity and clarity for Exchanges, providing confidence in planning and execution.
Who Qualifies
Eligible participants include individuals, partnerships, corporations, trusts, and LLCs exchanging business or investment real estate. While 1031 Exchanges typically apply to commercial, retail, multi-family, industrial, and investment-grade properties, they can also cover vacant land and certain leasehold interests.
If you're exploring a property swap or portfolio transition, a free preliminary assessment through our professional referral network can help you determine eligibility and identify strategic advantages..
HOW LEE & ASSOCIATES SOUTH FLORIDA CAN HELP
Our commercial real estate brokerage team goes beyond the transaction by connecting clients with specialized 1031 Exchange facilitators, including Qualified Intermediaries and tax advisors who manage the process end-to-end:
- Initial feasibility reviews to outline possible deferral benefits
- Referrals to certified professionals to structure compliant exchanges
- Customized strategies aligning with your investment goals and timing
We'll handle the heavy lifting, so you can seamlessly close, exchange, and re-invest—staying on the path to sustainable growth.
Ready to Explore a Tax-Deferred Opportunity?
About Lee & Associates South Florida
Lee & Associates South Florida is a fully vertical commercial real estate brokerage firm focused on industrial, office, retail, multifamily, investment and land sectors. Our dedicated team of professionals is led by Matthew Rotolante, CCIM, SIOR a 4th generation South Florida native in a family that has owned and operated commercial property here since 1928. Lee & Associates is the largest agent owned brokerage in the nation with Senior Agent’s ability to earn profit share resulting in the highest splits while still receiving full resources, support and leads from our national network. Our collaborative and cheerful culture allows for open communications throughout the company, fostering the sharing of information and best practices to better enable client decision making. The Lee & Associates’ robust national network that sold and leased over $120 Billion in the last 5 years offers clients a cross-market platform of expertise and deal opportunities across all asset specialties and representation roles. For the latest news from Lee & Associates South Florida, visit leesouthflorida.com or follow us on Facebook, LinkedIn, Twitter and Instagram, our company local news.
About Lee & Associates
Lee & Associates is a commercial real estate brokerage sales, leasing and management firm. Established in 1979, Lee & Associates has grown its service platform to include over 75 offices in the United States and Canada. Lee & Associates is the largest agent owned commercial real estate brokerage where agents get the greatest return for their efforts and hence are more committed and better enabled to provide superior results for their customers. For the latest news from Lee & Associates, visit lee-associates.com or follow us on Facebook, LinkedIn, Twitter and Link, our company blog.