Walter Burns
Thinking About Selling? A 1031 Exchange Might Help You Keep More Working for You
If your Hudson County condo is an investment, selling doesn’t have to mean a big tax bill right away. A properly structured 1031 exchange may let you defer taxes and stay invested in real estate. I’ll help you understand your condo’s true value and how it could fit into a possible exchange.
How a 1031 Exchange May Fit Into Your Strategy
If your condo has primarily been an investment property, a 1031 exchange may allow you to sell and reinvest without immediately paying capital gains tax.
At a high level, a 1031 exchange allows you to:
- Sell an investment property and reinvest the proceeds into another qualifying investment property
- Potentially defer capital gains tax and depreciation recapture by following specific IRS rules and timelines
- Reposition your investment into a different type of property, a new location, or a building that better fits your long-term strategy
Because the rules are technical and time-sensitive, it’s essential to coordinate with a qualified intermediary and a knowledgeable accountant. My role is to help you understand the real estate side of the decision and connect you with professionals who can advise you on the tax side.
See what your condo could sell for and decide if a 1031 exchange is worth exploring.
Why Now Might Be the Right Time to Consider Selling
Condo values across Hudson County have shown resilience, supported by consistent demand and limited resale inventory. If you’ve held your condo for several years, there’s a good chance your equity position has improved.
Selling now could help you:
- Capture appreciation you’ve built over time
- Reduce ongoing carrying and management costs
- Reallocate funds into different investments or priorities
- Simplify your portfolio as market conditions evolve
The first step is knowing what your condo is realistically worth today.
What You’ll Receive When You Request Your Condo Value
When you request your condo’s value, you’ll receive:
- A building-specific market analysis using verified MLS data
- A current market value estimate based on recent comparable condo sales across Hudson County
- A high-level comparison of different paths you might consider — such as a traditional sale, exploring a 1031 exchange, or selling a condo you’ve lived in — so you know which questions to bring to your accountant
- An optional introduction to a trusted local accountant who can help you understand how each approach could affect your bottom line
This is not an automated online estimate. It’s a custom, data-driven analysis built around your condo, your building, and current market conditions.
You may have more equity than you think.
Tax Considerations for Owners Who Have Lived in Their Condo
Some Hudson County condo owners have used their unit as a primary residence for part of the time and as a rental for another period. In many cases, this may open the door to the homeowner tax exclusion, which can reduce how much of your gain is taxable when you sell.
In general, you may benefit from this exclusion if:
- You’ve lived in the condo as your primary residence for a certain amount of time during the past several years, and
- You meet the IRS use and ownership requirements for the homeowner exclusion
The exact amount of gain you might exclude — and how any rental use or depreciation may affect things — is highly specific to your situation. That’s why it’s important to review your numbers with a tax professional. As part of my service, I can introduce you to a trusted local accountant who regularly works with condo owners in Hudson County and can walk you through the details.
Common Questions from Hudson County Condo Owners
Can I sell my condo if it’s currently rented?
Yes. Many owners choose to sell with a tenant in place, while others wait until the end of the lease. The best approach depends on your lease terms, your tenant’s plans, and the type of buyer you want to attract. I can walk you through your options.
Do I have to buy another condo to consider a 1031 exchange?
Not necessarily. Many types of real estate held for investment can be considered “like-kind” under IRS rules. An accountant and qualified intermediary can help confirm what qualifies for your situation.
If I lived in my condo for a while and then rented it out, is there still a tax benefit to selling?
Often, there can be. Some owners may qualify for a homeowner exclusion on part of their gain, while rental periods and depreciation may be treated differently. The specifics are best reviewed with a tax professional who understands your full history.
Can you help me understand what I might net from a sale?
On the real estate side, yes. I’ll prepare an estimate that includes your potential sale price, typical selling costs, and an approximate range of what you might walk away with before taxes. For the tax impact of different strategies, I’ll connect you with an accountant who can review your numbers in detail.
Unlock the True Value of Your Hudson County Condo
Whether you purchased your condo as an investment or as a place you used occasionally, the market in Hudson County may be working strongly in your favor. Many condo owners across communities like Jersey City, Hoboken, and surrounding towns are sitting on more equity than they realize.
Understanding your options — from a straightforward sale to tax-deferred strategies — can make a meaningful difference in the outcome.
Data-driven condo valuation. No cost. No obligation.
Important Note
Information on this page is provided for general educational purposes only and should not be considered tax or legal advice. Tax outcomes depend on your personal situation and current laws. Always consult a qualified tax advisor, CPA, or attorney before making decisions based on potential tax treatment.