California Attorney Helps Clients Complete Tax-Deferred Exchanges

Skilled firm effectuates Section 1031 transactions

Increased values within the commercial real estate market can trigger significant tax liability when it comes time for a business to sell their property and find a new location. Fortunately, Section 1031 of the Internal Revenue Code offers relief from capital gains taxes if certain standards are met. At TransActionLaw, I draw on more than 30 years of experience to deliver trustworthy counsel to all types of California businesses that seek to defer taxation by completing a property exchange. In standard 1031 arrangements and “reverse exchanges” where the new property is bought before the sale of the existing parcel, I can promptly assess your eligibility and guide you through each step.

Thorough adviser works to put off recognition of commercial property gains

If you’re considering selling or swapping your commercial real estate property, you may be able to reap substantial benefits by organizing a like-kind exchange. In an initial consultation, my firm will explain key aspects of these transactions, such as:

• Qualified business or investment property — Section 1031 exchanges must involve properties that are related to trade or business. Personal property is not eligible for this tax treatment. The relinquished parcel and the replacement parcel do not have to be similar structures as long as they are both business-related.
• Relative value of real estate parcels — The value of the replacement property must be equal to or greater than the value of the relinquished property.
• Narrow timeframe — To defer tax on the proceeds of the initial sale, you must designate the replacement property within 45 days and finalize the transaction within 180 days from the date the relinquished property was sold.
• Intermediary — If the exchange is not simultaneous, the funds must be held by a qualified intermediary during the period in between the sale and the purchase. My firm can serve in this role.

Even if you’re unsure whether your real estate transaction is suitable for Section 1031 tax deferral, I’ll give you the advice you need to make decisions that help your business thrive.

Contact a proven California attorney for a consultation about tax-deferred exchanges

William B. Brinckloe, Jr. of TransActionLaw outlines the benefits and drawbacks of tax-deferred exchanges and guides clients through the necessary steps. Please call 949-668-1385 or contact me online to schedule an initial consultation at my Irvine office.