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Leah Badach, 1031 Exchange Specialist serving Hawaii

1031 Exchange Specialist Hawaii

Certified Exchange Specialist

The Sontag Group The Sontag Group

Hawaii's trusted qualified intermediary for seamless 1031 tax-deferred exchanges on vacation rentals, condominiums, and commercial properties.

10+
Years
5,000+
Exchanges
$1B+
Facilitated

1031 Exchanges in Hawaii

Looking to defer capital gains taxes on your Hawaii investment property? A 1031 exchange lets you sell and reinvest into like-kind property while keeping 100% of your equity working for you. High property values make tax deferral through 1031 exchanges especially impactful.

Hawaii taxes capital gains at up to 7.25%, one of the higher state rates. Working with a Certified Exchange Specialist ensures you meet every IRS deadline and maximize your tax deferral — whether you're exchanging vacation rentals, condominiums, and commercial properties in Honolulu, Maui, Kailua-Kona.

Leah Badach, CES at The Sontag Group, has facilitated over 5,000 exchanges totaling more than $1 billion nationwide, including forward exchanges, reverse 1031 exchanges, DST exchanges for passive investors, and construction/improvement exchanges.

Hawaii 1031 Exchange FAQ

Common questions from Hawaii investors

How does a 1031 exchange work in Hawaii?
A 1031 exchange in Hawaii follows the same IRS rules as anywhere in the U.S. You sell an investment property, a qualified intermediary holds the proceeds, you identify replacement properties within 45 days, and close within 180 days. Hawaii taxes capital gains at up to 7.25%, one of the higher state rates.
Do I need a qualified intermediary in Hawaii?
Yes. IRS rules require a qualified intermediary (QI) to facilitate your 1031 exchange. The QI holds your sale proceeds and ensures compliance with all deadlines. You cannot touch the funds yourself, or the exchange is disqualified. Talk to a certified QI today.
What properties qualify for a 1031 exchange in Hawaii?
Any property held for investment or business use qualifies, including vacation rentals, condominiums, and commercial properties. Primary residences and fix-and-flip properties do not qualify. Your replacement property can be in any U.S. state — you're not limited to Hawaii.
Can I exchange my Hawaii property for one in another state?
Absolutely. 1031 exchanges allow you to sell in Hawaii and buy replacement property anywhere in the United States. Many investors use this to diversify into different markets or move into passive investments like DSTs.
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