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1031 EXCHANGE PITFALLS MIAMI INVESTORS MUST AVOID (2025 GUIDE)

ByThe Opes Group Staff
THE summary

IN THIS ARTICLE

  • Learn the exact title-structure rules Miami investors must follow in a 1031 exchange.
  • Discover how adding spouses, relatives, or partners can accidentally trigger capital gains.
  • See why investors in Westchester, Shenandoah, Little Havana, Coral Gables, Allapattah, Kendall, and Homestead face these hazards most.
  • Understand the difference between sales price vs. net proceeds — the most common investor misunderstanding.
  • Review the IRS timelines (45-day ID, 180-day close) and how they impact Miami investment sequencing.
  • Learn why IRS evaluates the full sales price, not net cash.
  • Get guidance from top 1031 intermediaries.
  • See how Opes structures fully compliant 1031 investments across Miami.

Miami’s investment market is fueled by diverse rental neighborhoods and strong appreciation. 1031 exchanges allow investors to avoid capital gains by transferring equity into a higher-value property.

Learn more:

https://www.fidelity.com/learning-center/wealth-management-insights/what-is-a-1031-exchange

TITLE NAME MISTAKES THAT TRIGGER CAPITAL GAINS

In 2024–2025, the Miami Association of Realtors (MIAMI) updated guidance on what ageAdding a spouse or changing ownership percentages can inadvertently create taxable “non-exchange” portions.

Intermediary resources:

https://www.assetpreservation.com/

https://www.ipx1031.com/

SALES PRICE VS. NET PROCEEDS — A COMMON MISUNDERSTANDING

The IRS evaluates the full sale price, not what you net after expenses. This mistake often impacts investors unloading duplexes or triplexes in Westchester, Shenandoah, and Little Havana.

IRS explanation PDF:

HOW MIAMI INVESTORS CAN AVOID 1031 MISTAKES

When all required forms are executed and submitted, sellers gain expanded marInvestors should keep the same purchasing entity, maintain equal or greater value, and pre-coordinate with a qualified intermediary.

Opes works directly with CPAs and exchange facilitators to prevent errors.

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