What is a 1031 Exchange?
The tax consequences of selling real estate can limit the appeal and even hamper the ability of a real estate owner to sell a property that has seen an increase in value. The taxes levied upon a sale may even prohibit an owner from purchasing another property as they may be left with too little cash to re-invest. Whether you own one rental property, or own a business with commercial real estate holdings, Section 1031 of the Internal Revenue Code enables you to take advantage of a tax deferral when you are selling real estate and reinvesting in a replacement property of like-kind.
A 1031 exchange, which is also knows as a Starker exchange, Starker trust or tax deferred exchange, is one of the most effective tax strategies available when selling and buying real estate “held for productive use in a trade or business or for investment.” By structuring your sale and purchase of property as an exchange, you can potentially reduce the recognized tax gain all the way down to zero.
Working with You and Your Team
Many of our existing clients are referred by their attorneys or their tax advisors. We are happy to work with your trusted advisors and other professionals to help accomplish a successful 1031 exchange.