Making Sure Your 1031 Exchange Goes Smoothly
Often referred to as a “like-kind” exchange, a 1031 tax-deferred exchange of property is a strategic way to grow your assets while maintaining cash flow. In theory, the practice is simple. It allows a person to defer capital gains taxes from the sale of one property to enable them to buy another.
However, restrictions to 1031 exchanges and the timelines in which property must be sold, named and purchased make these transactions complicated. To ensure your interests are being represented, work with a team who has experience with complex real estate exchanges.
At Katz Melinger PLLC, we work individually with each client to understand their goals and address their concerns. Whether we’re working as your qualified intermediary or overseeing the process as your attorney, we want to help you feel confident about your investment.
Experienced Advisors For Expensive Investments
The real estate market in New York and northern New Jersey is competitive and the laws for property sales, purchases and exchanges are complex. The penalty for making a mistake during a 1031 exchange is great and could trigger expensive IRS penalties. After the sale of your property, you have 45 days to identify the replacement property, which must be considered a like-kind exchange. This is determined by the characteristics of the property and should be of equal or lesser value to the building you sold. However, the details regarding how a 1031 exchange can be carried out and what qualifies is unique to each situation. Work with an experienced lawyer and buyer’s agent to help avoid expensive mistakes and make the most of your investment.
We Can Also Be Your Qualified Intermediary
The attorneys at Katz Melinger PLLC regularly oversee a variety of real estate transactions and understand the intricacies of state and federal laws. We have the ability to oversee the investment as your attorney. We can also advocate on your behalf as your qualified intermediary, provided that we haven’t represented you within the last 2 years.