Section 1031 of the Internal Revenue Code allows an investor to sell one property and reinvest the proceeds in another property and defer the capital gain.
If you've owned your property for a number of years and taken depreciation during that ownership, your gain could be sizeable, and so could your tax burden! Using the tax code to your benefit, you could replace your current property and avoid paying that tax.
There are some rules that must be followed when conducting a 1031 exchange. There are time restrictions, provisions for identifying properties, and a requirement that a Qualified Intermediary takes possession of the funds on your behalf. If you sell a property and take possession of the funds, that disqualifies you from the tax-free exchange.
YABLO Commercial Real Estate, LLC will help you understand the restrictions and guide you through the process so you can take advantage of this powerful investment tool.
Contact us today to discuss your specific situation. You can call us at (763) 231-0282 ext. 200 or send an email by clicking here.