We offer 1031 exchange services designed to help taxpayers secure maximum tax deferral in a wide range of circumstances.
Section 1031 of the Internal Revenue Code allows taxpayers to defer capital gains tax on like-kind exchanges of qualifying real and personal property. But, to secure tax deferral, taxpayers do not truly have to exchange one piece of property for another. Taxpayers’ sale and purchase transactions can take place separately, and taxpayers can even secure tax deferral when acquiring a replacement property before selling the property to be “exchanged.” Doing so, however, requires 1031 exchange services from a qualified intermediary.
We Provide Assistance with All Types of 1031 Exchanges
We offer comprehensive 1031 exchange services focused on helping taxpayers secure tax deferral. We offer these services for all types of 1031 exchanges, including:
1. Straightforward 1031 Exchanges
A straightforward 1031 exchange involves selling one piece of property before buying another asset of like kind. Reinvesting in like-kind property through a 1031 exchange avoids recognition of any gain resulting from the sale of the exchanged property—thus deferring any capital gains tax liability.
Most 1031 exchanges fall into this category. However, while these exchanges may be relatively straightforward, issues can still arise. As a result, it is important to obtain 1031 exchange services from a qualified intermediary that can guide you through the process.
2. Reverse 1031 Exchanges
A reverse 1031 exchange involves purchasing a replacement property before selling the property to be exchanged. These exchanges qualify for tax deferral under a safe harbor provision that requires use of an “Exchange Accommodation Titleholder” to facilitate the series of transactions involved. To qualify under the safe harbor, the sale of the exchanged property must take place no more than 180 days after acquisition of the replacement property.
However, even if the acquisition of a replacement property takes more than 180 days, taxpayers can still secure deferral—if they take the necessary steps. We provide services for both types of reverse 1031 exchanges and serve as Exchange Accommodation Titleholder for clients utilizing the reverse exchange safe harbor.
3. “Build to Suit” 1031 Exchanges
In a “build to suit” 1031 exchange, the taxpayer uses proceeds from the sale of the exchanged property to improve the replacement property. While this is a straightforward 1031 exchange in process, the replacement property must be “parked” with a qualified intermediary while the improvements are completed. Additionally, with “build to suit” 1031 exchanges, a strict 180-day deadline applies, so careful timing and effective planning are crucial for securing tax deferral. We have helped many taxpayers through the “build to suit” exchange process, and we can use our experience to guide you forward.
Inquire About Our 1031 Exchange Services
If you would like more information about our services for straightforward, reverse or “build to suit” 1031 exchanges, we invite you to get in touch. To speak with an attorney about our 1031 exchange services in confidence, give us a call or tell us how we can contact you online today.