Using a 1031 to Defer Paying Taxes on Property
We’ve reached the end of October and the Holiday Season is just getting started. Tax Season is fast approaching and folks are hustling about to get everything in order for the new year.
The Alron team is already working with local small business owners to prep for tax filing. From hosting Tax Forum Seminars, to writing blogs and more, we are getting a jump on the new year. Our Management Team is ready to advise and assist where needed. One thing that you may want some help with is filing a 1031 Tax Differed Exchange.
Do you have investment properties? Are you looking to sell and/or buy additional properties? Have you heard of a 1031 Form?
Consider filing a 1031 to defer paying taxes on properties.
A 1031 tax deferred exchange is the method by which a taxpayer who owns property, which has been held for investment or in connection with a trade or business, can exchange the property for like kind property, which will also be held for investment or in connection with a trade or business, and defer paying taxes on some or all of the capital gains. For investments held by individuals, the deferral can continue through any number of exchanges until the tax liability is extinguished by death. The regulations which govern exchange transactions are in Section 1031 of the Internal Revenue Code.
The 1031 tax deferred exchange is a powerful tool. However, the complexities of the requirements necessitate careful legal and tax planning at a very early stage.
We can enable you to use more of your equity to acquire investment properties. Long favored for estate planning, an exchange can be employed to leverage, consolidate or diversify assets. Think of Alron Management, Inc to move from a poor investment choice into a better income or equity position.
Alron Management,Inc. can act as your Intermediary and we will:
- Prepare the Exchange Agreement, Assignments, Notices and other exchange.
- Coordinate the exchange transaction with you, your tax advisor and closing agents.
- Receive the net proceeds from the transfer of the relinquished property and invest them in an interest bearing account. Interest at an aggressive rate will be credited to your exchange credit account.
- Provide you with periodic reminders of your exchange deadlines.
- Prepare a complete, accurate and timely account summary, which itemizes the receipt and disbursement of all exchange credit funds.
- Alron Management, Inc. will work closely with your real estate and financial professionals to maximize your investment success.
Contact Brevard’s Document Specialist
We are here to help! Schedule a consultation with one of our knowledgeable experts. We’ve helps thousands of small business owners and we look forward to serving you.
Alron Management, Inc. will provide forms and assistance to complete the exchange, the IRS recommends that your tax advisor and/or attorney review and approve these documents. Our role is to provide the mechanism to accomplish the exchange. Alron Management, Inc. cannot advise you concerning the specific tax consequences of your transaction. Alron Management, Inc. is not able to comment on the advisability of conducting an exchange.