Irs 1031 Exchange Explained

Internal Revenue Code provides that no gain or loss shall be recognized on the exchange of commercial property is held for productive use in a trade or business, or for investment. A tax-deferred exchange is a method by which a property investors trades one or more relinquished commercial properties for one or more replacement commercial properties of like-kind. Such an exchange allows the issuer to defer the payment of federal income taxes and some state taxes on the transaction.

The theory behind internal revenue code is to allow the property investors to reinvest the sale proceeds into another commercial property, foregoing any economic gains that may have been realized from the sale. If you have recently sold, or are thinking of selling commercial property, we can assist in matching you with a qualified IRS 1031 broker. An IRS 1031 broker can help you explore your IRS 1031 exchange options. Contact us today for a free consultation.

Benefits of a Irs 1031 Exchange

Benefits to an IRS 1031 exchange include:

Irs 1031 Exchange Benefits

Deferred capital gains taxes

Irs 1031 Exchange Benefits

The potential to yield more cash flow on an annual basis

Irs 1031 Exchange Benefits

More money to reinvest in a newer commercial property due to zero capital gains taxes calculated on the old commercial property

Consolidate your investment portfolio by electing a TIC exchange

Irs 1031 Exchange Benefits

Achieve your investment goalsThe benefits of investing in a TIC structured commercial property are definitely worth investigating. You have the ability to:

Invest in larger, institutional grade properties.

Diversify Your commercial property Portfolio

TIC Benefits

Diversify across different types and sizes of commercial propertys as well as geographic markets, potentially increasing both the value and safety of your commercial propertys.

Completing an IRS 1031 exchange with a TIC interest ownership in a commercial property allows property investors not only to defer their capital gains taxes, but also to upgrade their commercial property into larger, institutional-grade commercial property.

If you are interested in learning more about TIC exchanges available to you, contact us today.

Find An Irs 1031 Broker

Very often IRS 1031 exchanges can be riddled with a myriad of potential tax and legal pitfalls. For this reason, it is strongly suggested that each property investor elect a licensed IRS 1031 broker to oversee their transaction. This IRS 1031 broker (read registered representative) will be able to facilitate the exchange in a timely manner while watching out for the property investor's best interests and investment objectives.

An IRS 1031 broker will work with you throughout the exchange process to do all of the following:

1. Develop your investment strategy
2. Determine viable like kind replacement commercial property for the exchange
3. Answer any questions you may have regarding the exchange process
4. Manage the exchange from start to finish

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