Alabama 1031 Property Exchange, Inc.

09/30/2026

Gilbert Dukes III, our Founder and President, spoke this afternoon at a Lunch & Learn at Bay Life Church in Fairhope. He walked everyone through the fundamentals of Section 1031 exchanges and the mistakes that most often cost investors their deferral.

Thank you to Level Property Management Group and First Horizon Bank for hosting, and to everyone who came out and asked such good questions.

If you have a sale coming up and want to talk through whether an exchange makes sense, we would love to hear from you!

08/27/2026

Section 1031 is not just good for investors. It is good for the economy.

When investors are able to defer capital gains taxes through a 1031 exchange, they do not pocket the difference.

They reinvest it -----> and this is the key point!

That capital flows directly back into real estate, fueling property development, job creation, and economic activity at the local and national level.

Without Section 1031, many investors would simply hold onto properties longer rather than sell and trigger a large tax bill.

That means fewer transactions, less liquidity in the real estate market, and fewer opportunities for buyers looking to acquire investment property.

1031 exchanges also encourage investors to upgrade and improve their holdings over time, moving capital from underperforming assets into higher and better uses. That benefits communities, not just portfolios.

Contrary to dissenting opinions, it is not a loophole.

It is a deliberate provision of the tax code that has been encouraging continued investment in real estate for over a century.

Visit www.ala1031.com to learn more.

08/18/2026

One advantage of working with Alabama 1031 is the ability to move quickly when it matters most.

Although our firm always encourages planning ahead, we also understand that people don't always have multiple days or weeks in advance to plan things out.

For example, we have received calls from clients who were sitting at the closing table, before the closing was finalized, and decided on the spot to conduct a 1031 exchange. Because of the way we operate, we were able to step in, coordinate with the closing agent, and get the exchange underway without missing a beat.

With a larger firm, that kind of responsiveness is hard to come by. More layers, more departments, more wait time.

At Alabama 1031, you are a client we know by name, and when you need us, we personally pick up the phone.

07/22/2026

Not all 1031 exchanges are created equal.

A straightforward deferred exchange is one thing.

A reverse exchange or an improvement exchange is another. These transactions require more coordination, more documentation, and more experience to execute correctly.

In our experience, complex exchanges are where investors often run into friction with QI's, whether that is unexpected fees, longer timelines, or simply being pointed in another direction altogether.

At Alabama 1031, we handle the full spectrum.

If you have been told a complex exchange is not worth the trouble, we might surprise you.

Reach out or visit www.ala1031.com to learn more.

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Alabama 1031 Property Exchange facilitates tax-deferred 1031 exchanges nationwide. Trusted qualified intermediary services since 1994.

07/15/2026

The role of the Qualified Intermediary in a 1031 exchange has only existed since 1991, when the IRS introduced regulations formally establishing the QI as the cornerstone of the exchange process.

Alabama 1031 Property Exchange, Inc. has been in business since 1994. That means we have been facilitating exchanges for investors across the Southeast and the United States for nearly as long as the QI industry itself has existed.

In that time, we have guided clients through thousands of exchanges of all shapes and sizes, from straightforward deferred exchanges to complex reverse and improvement exchanges.

Although there are now hundreds of qualified intermediaries across the country, there is a reason we have stood the test of time.

Visit www.ala1031.com to learn more about what we do.

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Alabama 1031 Property Exchange facilitates tax-deferred 1031 exchanges nationwide. Trusted qualified intermediary services since 1994.

07/09/2026

What does "like-kind" actually mean in a 1031 exchange?

This is a widely misunderstood concept, and the confusion is understandable. The phrase "like-kind" sounds like it means you have to buy the same type of property you sold.

That is not the case.

In the context of a 1031 exchange, like-kind refers to the nature of the property, not its type or quality. Any real property held for investment or business use is generally considered like-kind to other real property held for investment or business use.

You can sell timberland and buy a commercial building. You can sell a commercial building and buy a vacant lot. The flexibility is broader than most people realize.

Where people get confused is assuming that like-kind means identical. It does not. The only real requirement is that both the property you are giving up and the property you are acquiring are held for investment or business use.

Have questions about like-kind property or are thinking of conducting a 1031 exchange? Reach out or visit www.ala1031.com.

07/07/2026

What types of properties qualify for a 1031 exchange?

The short answer is that most real property qualifies, as long as it is held for productive use in a trade or business or for investment purposes.

For example, timberland, commercial buildings, and vacant lots can all qualify. Additionally, you are not required to exchange into the same "type" of property you sold, meaning you can exchange for a wide range of real estate types, provided they are "like-kind" property.

What does not qualify: a primary residence, a vacation home used mainly for personal enjoyment, or any personal property such as aircraft or equipment.

Have questions about whether your property qualifies? Reach out or visit www.ala1031.com.

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07/02/2026

At Alabama 1031, we are committed not only to helping structure our clients' exchanges properly, but also to helping them understand the process along the way.

Our "Helpful Links" page on our new website includes a detailed article written by Gil Dukes covering the rules, traps, and common misconceptions surrounding 1031 exchanges, along with other resources to help you navigate your transaction with confidence.

Visit https://www.ala1031.com/helpful-links to learn more.

Many tax deferred exchanges under Section 1031 of the Internal Revenue Code result in an unexpected tax liability — not because the strategy does not work, but because of incorrect advice, common misconceptions, or simple mistakes that could have been avoided with proper guidance.

06/26/2026

There is one thing that trips up a lot of people in 1031 exchanges, and that is a debt payoff.

The best way to explain how debt payoffs interact with these exchanges is through an example ➡️

Say you bought a property originally for $300K. Then, years later sell it for $500K, but say $100K of that goes toward paying off debt on the property.

In this scenario, you are left with $400K in actual cash.

Many assume they only need to reinvest that $400K to defer their full taxable gain, and that is incorrect.

❗To defer all of your gain, you need to reinvest the full $500K, not just your equity❗

That means you will likely need to take on new debt or bring in additional cash on your next property to make up the difference.

Skipping this step is a common and costly mistake in a 1031 exchange.

Questions about how this applies to you? Reach out, or visit www.ala1031.com.

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06/25/2026

Do you have to reinvest all of your sale proceeds in a 1031 exchange?

If you want to defer 100% of your taxable gain, yes.

Here is how it works...

Say you sell an investment property for $300,000 and your original cost was $100,000. That means you have a $200,000 gain. If you reinvest the full $300,000 into a new property through a 1031 exchange, you defer the entire $200,000 in taxable gain.

HOWEVER, for example, if you were to only reinvest $250,000 in the new property, you will owe tax on the $50,000 difference. And if you only reinvest your original $100,000 cost, you do not defer any tax. It would be as if you never did an exchange at all!

The bottom line: to get the full tax benefit, all of your net proceeds (sales price less any closing costs of the old property) need to go back into the next property.

Questions about how this applies to your situation? Reach out, or visit www.ala1031.com.

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