Tax Considerations when selling assets

When approaching a closing on commercial real estate it’s optimal to consider all strategies and objectives. If minimizing tax is a key concern, then a 1031 tax deferred exchange may the ideal path to evaluate. In fact, recently a client selling in Decatur, GA asked me about exchanging properties.

I emphatically supported the strategy for the 1031 Exchange to defer taxes and wanted reinforce the critical elements to address to properly satisfy the IRS.

What you need to know to avoid a miss-step or trigger tax:

→ A 1031 exchange defers capital gains when you reinvest sale proceeds
→ Your replacement property must be equal or greater in value
→ The 45-day and 180-day deadlines are non-negotiable
→ You must use a qualified intermediary no exceptions

Result:
→ Seller deferred all capital gains
→ Traded into a stable asset
→ Long-term plan and upside

RG Real Estate can help with your long term plans for commercial real estate.