If you are in need of assistance with executing a successful tax-free exchange of property, I can offer my experience to make for a seamless process. 1031 tax exchange transactions have made up a huge part of my business. A tax-free, or more accurately, a tax-deferred exchange is a method of selling like-kind real estate according to certain procedures and rules put in place by the IRS. The "Exchange" allows for all or most of the capital gains taxes to be deferred. It is helpful to imagine that the taxpayer is not selling a capital asset but is reorganizing his/her investments. Congress decided that this method of reorganization is not a taxable event if conducted in accordance with certain regulations.
Tax-deferred exchanges require more than a real estate professional, however, my role is to make you aware of the IRS rules, and show you how they can be applied to a particular sale. My job is to handle the real estate end of the transaction while coordinating with other involved parties for the successful completion. Timing, verbage, and proper execution are all required in order to avoid the taxation. The following is a list of examples of why you would want to exchange;
1. You would like to switch to a faster-appreciating investment.
2. Federal and state capital gain taxes can exceed 22 percent on the capital gain.
3. You sell fully depreciated property and buy a more valuable property creating a new tax shelter.
4. You want to leverage up your investments.
5. You want to rearrange your holdings in anticipation of death.
6. You want your investment property to be near your principal residence.
7. You want to sell your current property for reasons such as the age of the neighborhood or maintenance expenses, etc.
Investors are becoming aware of the many benefits that arise from the tax-deferred exchange. Please do not hesitate to contact me for assistance with yours! |