1031 Exchange in The Real Estate Market
June 14, 2022
The law office of David Scillieri Esq. assists real estate investors in conducting 1031 Exchanges. In conjunction with third party "qualified intermediaries", we guide our clients through the process of the 1031 Exchange Law explaining all aspects of its importance.
The office services will guide you on the proper transfer of the funds to comply with the law, representation at the closings for both the sale and purchase of the property, explaining in detail the time limitations that are involved and assistance in determining whether the property qualifies for the exchange.
A 1031 Exchange is a real estate investing tool that allows investors to swap out an investment property for another and to defer capital gains or losses or a capital gains tax that you otherwise would have to pay at the time of sale. This method is popular with investors looking to upgrade properties without being charged taxes for the proceeds.
You will also hear 1031 exchanges referred to as a like-kind exchange or a Starker exchange. Section 1031 applies to property beyond real estate, but many 1031 cases also deal with buildings and land.
As a Seller, you can postpone capital gains taxes by selling a property and putting the proceeds toward a like-kind property, or property similar in nature and value. If you don't receive any proceeds from the sale, there's no income to tax. In other words, you gain no profit from the sale.
We are experienced in this field and our office is available to assist you with all and any of your Real Estate matters.