Ten31 Farms, an online real estate marketplace, has launched an online marketplace it says will simplify 1031 exchanges for accredited investors in the farming and agricultural sector. According to Section 1031 of the U.S. Internal Revenue Code, an investor may sell a property, reinvest the proceeds into a new asset, and defer all capital gain taxes. One of the main issues, however, is time constraints.
“Failing to identify a replacement property within 45 days can result in substantial tax consequences, ranging typically from 20-40% of an investor’s total profits, depending on the property’s ownership duration and geographic location,” the company said in a press release today.
To simplify these exchanges, Ten31 Farms’ exchange offers various qualified opportunities. The company will then offer due diligence, providing optionality, and advisory services
“Our cutting-edge platform allows for the democratization of 1031 investments,” said President William Vellon. “Investments as small as $50,000, with increments as low as $1,000, can now participate in high-value assets valued at $50m to $100m. This opens up new opportunities for both small investors seeking diversification and larger investors looking to exchange large blocks of capital.”