What Real Estate Attorneys Need to Know about 1031 Exchanges

Real Estate Attorneys 1031 Exchange

It’s important for real estate attorneys to know the like-kind exchange process and the associated benefits. In this article, we are going to discuss what real estate attorneys need to know about 1031 exchanges in order to better advise their clients.

1031 Exchange Process & Benefits

Every real estate attorney should have a basic understanding of the 1031 exchange process and its benefits. Here is a quick and easy breakdown of the like-kind exchange process:

  • A taxpayer sells a piece of real estate (the relinquished property).

  • Within 45 days of selling the relinquished property, the taxpayer identifies new replacement property.

  • Within 180 days of selling the relinquished property, the taxpayer reinvests their sales proceeds into the new replacement property.

When done correctly, this process ensures that the taxpayer will defer their capital gains taxes on the sale.

Partner with a Qualified Intermediary

The best course of action you can take is to partner with a qualified intermediary when dealing with a 1031 exchange of real estate. Qualified intermediaries understand section 1031 (as well as various relevant private letter rulings by the IRS) inside and out. They are your go-to resource for all things 1031 exchange, and your best bet for guiding your client in the right direction. Reach out to a qualified intermediary today to get a better understanding of the process.

Defer The Tax – Maximize Your Gain!

A 1031 exchange of real estate allows you to defer your capital gains taxes when selling real estate as long as you reinvest your sales proceeds into a new replacement property. This allows you to maximize your gain in the most tax-advantageous arrangement possible. The qualified intermediaries at Commercial Partners Exchange Company have twenty years of experience working on like-kind exchanges of real property. Let us help you through the exchange process. You can find us at our offices in downtown Minneapolis, or at one of our satellite offices around the country.

  • Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

 

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