what is a 1031 exchange?

A 1031 Tax Deferred Exchange offers taxpayers one of the last great opportunities to build wealth and save taxes. By completing an exchange, the Taxpayer (“Exchanger”) can dispose of investment or business-use assets, acquire replacement property and defer the tax that would ordinarily be due upon the sale.

1031 refers to section 1031 of Internal Revenue Code. A 1031 Exchange allows people to defer Federal capital gains tax, state ordinary income tax, net investment income tax, and depreciation recapture on the sale of Investment property if certain criteria are met including:

• Buy replacement property for equal or greater than sold for and reinvest all proceeds
• Identify replacement property within 45 days of close of sale
• Purchase replacement property within 180 days of close of sale
• Must Sell and Buy property that is considered “like-kind” to each other
• Process must be handled by a Qualified Intermediary.
  

The brokerage experts at First and Main RE have established relationships with some of the best Qualified Intermediaries in the industry.  In addition, we have the transactional experience and market knowledge to get you the best deal possible. Contact us today to see how we can help you see the highest return on your investment.

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posted by:  jennifer mussato

Jennifer Mussato is president at Denver-based First and Main RE powered by Keller Williams, a real estate group that specializes in commercial leasing, acquisitions, dispositions and investment strategies.