Through my 1031 exchange real estate services, I help investors locate 1031 exchange properties and prime investment property in the Georgia Lake Country area. I understand the time constraints associated with identifying replacement property and am dedicated to helping buyers find property quickly.
To discuss replacement properties that are currently available, just provide your 1031 exchange requirements and let me do the rest. With access to several area Multiple Listing services (FMLS, GAMLS and Paragon), I can save you money and time.
IRS Code Section 1031
A 1031 exchange refers to Section 1031 of the IRS code which addresses the exchange of real property held for productive use or investment. No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held either for productive use in a trade or business or for investment. - Section 1031(a)(1) IRS Code.
In a typical sale of investment or commercial property, the owner can be taxed on any capital gains realized by the sale. However, the 1031 exchange allows an investor to defer payment of capital gains tax by disposing of one investment property and exchanging into another without incurring immediate tax liability. Thus, the earning power of the tax deferred dollars continues to work for the investor through the new investment property.
The 1031 exchange offers more than favorable tax benefits. It can also be used as a means of strategic investment planning. The smart investor can use a 1031 exchange to reach beyond tax deferment and fulfill a broader financial strategy. For instance, an investor might exchange into a property with a superior location, easier management, or improved cash flow.
The 1031 exchange is an excellent tool for any investor seeking to preserve, create and build wealth through investment real estate. To learn more about 1031 exchange, refer to Section 1031 of the IRS Code (Printable IRS Code - Section 1031).
1031 Exchange Real Estate Investment Options
The types of real estate that qualify for a 1031 exchange under IRC Section 1031 include most real property held for investment. Some examples are:
Raw land
Motels and hospitality properties
Office and retail buildings
Apartments and multifamily properties
Farms, horse farms, and agri-business property
Warehousing and industrial real estate
Single family rentals and vacation rentals
Sometimes called a like kind exchange, a 1031 involves the exchange of real property for real property. Thus, any combination of real property types can be exchanged. For example, a warehouse can be exchanged for an apartment building, a motel can be exchanged for raw land, or a bed and breakfast can be exchanged for a retail building. Also, an investor might opt to exchange one large investment property for several smaller investment properties.
1031 Exchange Real Estate Services
It is important that a 1031 transaction be structured to meet all the requirements in Section 1031 of the Internal Revenue Code in order to qualify as a valid exchange. The 1031 exchange process requires assistance from a team of professionals:
1031 Exchange Specialist. My job is helping you identify and purchase properties that meet the requirements of your investment plan within the 1031 Exchange time frame.
Intermediary, Legal and Tax Services. It is important to work with qualified local professionals that are familiar with 1031 Exchanges to ensure smooth and timely completion of transactions. Getting the right tax advise from an experienced CPA and/or Attorney is is essential and strongly recommend. As a 1031 Exchange Specialist, I've developed relationships with trusted area professionals that can deliver expert advise.
I look forward to the opportunity of helping you with all your Real Estate needs.
