Exploring Your Options For A 1031 Tax-Deferred Exchange
If you are considering selling an investment property, you might be hesitating because of the capital gains tax penalties involved. Under IRC Code Section 1031, you have the option to defer taxes when selling. However, you need an attorney to make sure the process follows the law. There are strict rules and timelines that must be adhered to for an exchange to be successful.
For counsel regarding your rights and options in tax-deferred exchanges, you can speak with attorney Phil Napolitano. Since 1996, clients in the Bronx and other boroughs have turned to him at the Law Office of Phil Napolitano to ensure that their 1031 exchanges comply with all state and federal regulations.
Deferred Exchanges: What To Know
A carefully planned 1031 exchange allows you to defer paying the capital gains tax if you take the profits from the sale and reinvest them in a similar commercial or residential investment property. Some options for your exchange structure include:
- Delayed exchange
- Simultaneous exchange
- Reverse exchanges
- Construction or improvement exchange (also called built-to-suit)
The Internal Revenue Service (IRS) regulates and examines deferred exchanges very closely. It will not hesitate to slap you with a fine or another civil penalty if it finds that you have violated a regulation, even if it was an innocent error.
Detail-Oriented – Experienced – Knowledgeable
With more than 26 years of experience, Phil has handled hundreds of complex transactions for New York real estate investors. As required by the Internal Revenue Code, he will engage a reputable Qualified Intermediary to partake in the exchange. Phil will insure that all 1031 agreements are structured correctly, comply with tax law and protect your best interests.
Ask A Real Estate Lawyer About Your Options
If you are curious about using a 1031 exchange to defer your capital gains taxes, speak with Phil Napolitano. He will provide the cohesive guidance you need. To schedule an initial consultation with him, please call 718-414-6175 or send him an email.