If you are looking to delay incurring capital gains on investment property, then Section 1031 of the Internal Revenue Code might be the solution. It takes a special law firm with years of real estate experience to properly advise and handle 1031 exchanges. Most investors do not receive competent counsel on 1031 exchanges and miss significant tax savings. Without the proper advice, they might inadvertently make a mistake that loses them substantial tax savings.
A Klein Law Group, our attorneys can give you competent and reliable advice on the benefits of a 1031 exchange. The first step is identifying a “like kind” exchange. Basically, this means the property being sold and the property being purchased are both for investment purposes. A primary residence does not qualify for a 1031 exchange. It does not matter if the property being sold is a commercial warehouse, but the property being purchased is a condominium. The “like-kind” exchange can happen between almost anything, like a shopping center, vacant land, rental home, condominium, or office building, so long as the exchange is for investment purposes.
Next our attorneys will advise you on purchasing your next investment property. There are strict deadlines for entering into a contract and closing on the new property to ensure the tax benefit. In addition, the purchase price must be equal or greater than the sale of the prior investment property to qualify for the full benefit.
Finally, our 1031 real estate exchange attorneys will advise you on closing the transaction, making sure title requirements are met and acting as a qualified intermediary.
If you plan on reinvesting proceeds from the sale of investment property, then you may qualify for a 1031 exchange. Klein Law Group is equipped to handle your questions and give reliable advice throughout the process.