Property Exchanges
Trading Properties
In the current market conditions, a Seller may
try several methods to move their property. Trading
a property for another property is something unique.
For example, Seller A has a condo at the beach which
has not sold and Seller B has a home in Fairhope yet
desires for a beach condo. Ashurst and Niemeyer, LLC
can construct a transaction for the benefit of both
Sellers.1031 Exchanges
Often overlooked, a 1031 exchange is considered
one of the best kept secrets in the Internal Revenue
Code and can offer significant tax advantages to
real estate buyers. A real property owner can sell
his property and then re-invest the proceeds in
ownership of a like-kind property and defer the
capital gains taxes. Section 1031 of the Internal
Revenue Code states that no gain or loss shall be
recognized on the exchange of property held for
productive use in a trade or business, or for
investment. When a property owner has reinvested the
sale proceeds into another property, the economic
gain has not been realized in a way that generates
funds to pay any tax. However, this exchange under
1031 is tax-deferred, not tax-free. When the
replacement property is ultimately sold, the
deferred gain plus any additional gain since the
purchase is subject to tax.If you are a candidate, consult your tax
accountant and then give Ashurst & Niemeyer an
opportunity to help you with your 1031 real estate
exchange.
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