Advantages of 1031 tax deferred exchanges
The chief advantage of a 1031 Tax Deferred Exchange is the ability
to defer the payment of federal capital gains tax on qualified transactions
for an indefinite period. Owners may sell investment property, income
producing property, or business property and replace the sold property
with like-kind property as long as the proper regulations are followed
the capital gains tax on the sale is deferred. The savings on the
capital gains tax can then be invested in the exchange property
allowing you to purchase a larger property or to increase the initial
payment for the exchange property.
Just selling your property and then purchasing a replacement property
won't qualify as a tax deferred exchange, there must be an actual
Exchange of properties as outlined in Section 1031 of the Internal
Revenue Code. While there are many different kinds tax deferred
exchanges and the regulations somewhat complicated, Westwood Net
Lease Advisors have qualified and experienced staff to insure that
all regulations are complied with.
Safe Harbor 1031 exchange regulations
In order to clarify the rules regarding 1031 exchanges, the IRS issued "safe-harbor" Regulations in 1991 which clarify and govern the procedures for approved exchanges under Section 1031.
Prior to the issuance of these Regulations, 1031 exchanges were subject to challenges on a variety of issues, but with the issuance of the Safe Harbor Regulations, tax-deferred exchanges have become easier, more affordable and safer than ever before.
How can I find and secure a suitable 1031 exchange property?
Thousands of investors are currently trying to locate the best 1031 exchange properties in order to save their tax dollars. The 1031 market is very competitive and the very best properties are simply not being advertised or posted on web pages. Instead they are offered first to specialists who have an track record for satisfactory placement of these properties. The bottom line is that as a real estate investor you need every edge you can get.
Westwood Net Lease Advisors has relationships with hundreds of
top retail developers, REITs and pension funds enabling you to obtain
the kind of property you want. We are constantly working to expand
our close knit relationships with large developers who build triple
net lease properties for major corporations. In addition we also
co-operate with brokers that have exclusive relationships and listings
with large developers.
To contact a Net-lease specialist either fill out our brief Inquiry Form or call us Toll-free 866-638-1031. |
