Tax Deferred

Tax Deferred Interests

Tax Deferred

Recognized as an industry leader in this area, we provide knowledgeable, creative, and trusted staff that are the best in the country. Each exchange is given the same level of professional attention and focus, regardless of the size or complexity. Each client receives timely notifications regarding any and all time frame requirements of their exchange.

From a straightforward “one-for-one exchange” to the most complicated “reverse” and “construction build-out” types of exchanges, you will get the kind of assistance and documentation necessary from an accommodator, to ensure your transaction meets all the needed IRS guidelines. Have questions regarding your exchange? Just “Ask Al” and get a timely response to your worries.

Tax deferred exchanging is a valuable investment strategy that can be considered by anyone who owns real estate for investment purposes. Anyone who is involved with advising or counseling real estate investors, including real estate agent, lawyers, accountants, financial planners, enrolled agents, tax advisors, escrow and closing agents, and lenders, should have all the information they need regarding tax deferred exchanging.

A tax deferred exchange is simple. It’s a method that allows a property owner to trade one property for another one, without the requirement to pay federal income taxes on that transaction. In an ordinary transaction for the sale of real estate, the property owners would be taxed on any gain realized by the sale of that property. But with an exchange, the tax on that transaction is deferred until a time in the future, generally when the newly acquired property is eventually sold.

These exchanges are often called “tax-free exchanges,” because the exchange transaction itself is not taxed.
Tax deferred exchanges are authorized by Section 1031 of the Internal Revenue Service Code. The requirements of Section 1031 and other sections must be met very carefully. When hen an exchange is handled properly, the tax on the transaction can be deferred.

In an exchange, a property owner disposes of one property through sale, and acquires another property through purchase. The transaction has to be structured in a way that is actually an exchange of one property for another, rather than the direct sale of one property and the purchase of another. Today, a sale and reinvestment in a replacement property is converted to an exchange by an exchange agreement. It is also important to use the services of a qualified intermediary. This is a fourth party who helps ensure the exchange has the proper structure.

New regulations from the IRS make exchanging property this way easy, inexpensive, and safe.