1031 Tax Deferred Exchange of real estate

1031 exchanges provide investors with one of the best tax strategies for preserving the value of an investment portfolio. By using an exchange the investor is able to defer the recognition of capital gain taxes that would otherwise be incurred on the sale of investment property. The investor can then use the entire amount of the equity to purchase substantially more replacement property. To qualify as an exchange the relinquished and replacement properties must be qualified “like-kind” properties and the transaction must be structured as an exchange.

Internal Revenue Code 1031

“No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like-kind which is to be held either for productive use in a trade or business or for investment.”

Did you know that section 1031 of the US Internal Revenue Code allows real estate investors to defer capital gains taxes on the exchange of similar properties? Currently, there are many significant opportunities for 1031 Tax Deferred Exchanges. Let our team of commercial real estate experts begin investigating current available properties for you!

Potential properties defined as “like-kind” include property that has been and will be held for productive use in the investor’s trade, investment or business.

  • Agricultural Land
  • Apartments
  • Equipment
  • Hotel
  • Leased Properties
  • Manufacturing
  • Mixed Use
  • Office
  • Residential
  • Retail
  • Tenant in Common (T.I.C.) Properties
  • Vacant Land
Image
The process of an exchange is not necessarily a complex one – but strict adherence to IRS guidelines must be implemented to assure your exchange is qualified. The IRS has specific protocol and timeline requirements and documentation to confirm qualification.

Types of Exchanges

  • Simultaneous
  • Delayed
  • Construction
  • Multi-asset
  • Multi-party
  • Multi-property
  • Reverse
CALCULATING THE APPROXIMATE CAPITAL GAINS TAX
The process of an exchange is not necessarily a complex one – but strict adherence to IRS guidelines must be implemented to assure your exchange is qualified. The IRS has specific protocol and timeline requirements and documentation to confirm qualification.
1031 Tax Deferred Exchange of Real Estate

Contact us today!

It is advised that you consult with your accountant / tax advisor for specific review of your particular transaction.

Let our team at APPRO & CERRON get started investigating the great opportunities 1031 Tax Deferred Exchanges may hold for you.