Section 1031 of the Internal Revenue Code allows the owner(s) of certain property to defer federal taxes associated with gain or loss on the sale of such property by acquiring qualified similar property. In large real estate transactions, investors can realize very substantial tax savings. This method allows your investment to continue to grow tax deferred. 1031 exchanges are subject to strict time and money handling requirements. For example, to complete a proper 1031 exchange, it is crucial that the proceeds from the first sale be given to a qualified intermediary, that replacement properties be identified in a specific fashion, and that all proceeds be accounted for on both transactions.
A 1031 exchange offers a great opportunity for a person to avoid paying taxes on the sale of property that he or she intends to rollover into a new property. However, there are multiple requirements and conditions that must be met in order to reap this benefit and avoid severe tax consequences in the future. It is very important to have the guidance and legal expertise of qualified New York 1031 exchange attorneys. The attorneys at Kokolakis Law Firm have represented a multitude of clients in 1031 exchanges. Our law firm is highly focused in this unique area of real estate law. By completing a proper 1031 exchange, you can essentially change the form of your investment without cashing out or recognizing any capital gains. Schedule a consultation today to speak with 1031 Exchange Attorneys in Queens, NY and Astoria, NY.
- What Is A 1031 Exchange? What Does It Do?
- Can A Primary Residence Be Converted Into An Investment Property?
- What Are 1031 Exchange Identification Rules?
- What Is Constructive Receipt?
- Why Should I Consider A 1031 Exchange When Selling An Investment Property?
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