If you’re a property owner or real estate investor, you can save considerable sums with Internal Revenue Code Sec. 1031. This important provision allows taxpayers to reinvest profits in a tax deferred manner. It’s commonly known as a 1031 like kind exchange. Attorney Joseph Callahan has over 30 years of legal experience. He was one of the first to earn a joint law degree and Master’s Degree in Accounting at Syracuse University. His extensive knowledge of tax law, including IRS Code Section 1031, allows him to assist people who want to reinvest in real estate while avoiding the capital gains tax. If you need help, call Joe about his availability to provide counsel on your tax-free exchange.
New York 1031 Like Kind Exchange Tax Lawyers
In the blog section of our website, we’ve written extensively about Section 1031 like kind exchanges. It’s a complicated area, so beware! If all you’re looking for are the basics on how it works, check out our Section 1031 Primer on the topic. We make it easy there, but set forth a summary for you here:
Comprehensive Like Kind Exchange Services
We have the ability to facilitate like kind exchanges involving large assets and all types of real property, including commercial, residential, agricultural, industrial and raw land. The firm can handle the entire exchange process, including:
- Drafting or reviewing buy-sell agreements
- Ensuring all contracts are correct
- Identifying the benefits and risks
- Providing counsel on how the exchange should be structured
In a 1031 or like-kind exchange, the seller delays state and federal taxes by not directly receiving the proceeds from the sale. The money passes to a qualified intermediary who holds the funds while the seller prepares to invest in a new property. There are specific rules to follow, however, to obtain tax deferral. For instance, the seller must identify where he or she will reinvest the money within 45 days. The seller must also invest in that property within 180 days.
The intermediary uses the funds to purchase the new property on the seller’s behalf. By bridging these separate transactions and avoiding direct seller involvement, the intermediary makes it possible to avoid current capital gains tax and let that money grow tax free for years.
More Complex 1031 Matters
If you’re looking for info on some of the weightier, more complex, aspects of 1031 transactions, we’ve covered a lot of them in blog posts. Check out: Partnership issues in tax deferred exchanges; vacation homes in a 1031 transaction; stepped up basis in a Sec. 1031 transaction. Others include Sec. 1031 improvement exchanges and reverse like kind exchanges.
Or, for a New York State, and/or New York City, drill-down about 1031, take a look at two other blog posts. Specifically, New York tax deferred like kind exchanges and New York City co-ops in Sec. 1031 tax deferred like kind exchanges. Both deal with some unique New York aspects of a like tax deferred transaction.
In connection with the 2018 tax law changes, we also wrote about the almost-loss of like kind exchange tax deferral. You can find that in our blog post the near death of the like kind exchange.
If a like kind exchange is of interest to you, you can come see us in Albany, New York City, Rochester, Syracuse, Utica, or Watertown. To schedule an appointment with one of our New York tax attorneys, though, please call toll-free 844-MCC-4TAX.
To learn about our offices you can click on he following links.
- Albany Tax Attorney
- New York City Tax Attorney
- Rochester Tax Attorney
- Syracuse Tax Attorney
- Utica Tax Attorney
- Watertown Tax Attorney
Wherever you’re located, Mackay, Caswell & Callahan can provide counsel for you at all stages of the exchange process.