Assisting Real Estate Investors
At the Law Offices of William Roberge, our attorney, William Roberge, helps clients complete 1031 property exchanges. For the right case and the right investor, a 1031 exchange, also known as a like-kind exchange or a Starker exchange, represents an opportunity to avoid taxation and maximize profit. However, these exchanges are highly regulated and each step of the process must be carried out exactly as required by the Internal Revenue Service.
How a Like-Kind/1031 Exchange Works
When an investment property is sold, the investor pays capital gains tax on the gain he or she realized in the sale. Under Section 1031, however, the law allows capital gains tax to be deferred on real estate that is exchanged for other investment real estate so long as the investor owns the replacement property. Our law firm works with tax advisors and has experience completing all phases of simple and complex 1031 tax-deferred exchanges. We can advise clients or serve as qualified intermediary, which is a requirement of the IRS in these transactions.
Issues in These Types of Exchanges
Investors who are contemplating like-kind exchanges should educate themselves on issues such as these before starting the process:
- Time limits for completing the transaction
- The role of the qualified intermediary, usually the person who holds the funds realized from the sale of the first property
- IRS reporting requirements
- Identifying an appropriate property to complete the process
- Opportunities for reverse exchanges
Our lawyer advises clients on these and all other aspects of 1031 exchanges. In the right circumstances, it can offer significant financial benefits.
Learn More About 1031 Exchanges
Contact our Rockville law firm at 888-335-2340 or complete our contact form for an appointment to discuss your plans. It is important to understand the details of these transactions to avoid unexpected tax consequences.
