Pivot Professional Partners is an alternative and reliable 1031 exchange advisor firm focused on 1031 Exchanges in the form of DST (Delaware Statutory Trust) Investments. If you are considering a 1031 exchange, you must know the existing 1031 rules.
Internal Revenue Code (IRC) section 1031 defines like-kind exchanges, usually referred to as tax-deferred exchanges. One of the last great chances for taxpayers to increase their wealth and reduce their tax burden is through a 1031 Tax Deferred Exchange. It allows the taxpayer (the "Exchanger") to sell assets used for investments or commercial purposes, buy a new investment property, and defer the taxes they would otherwise owe at the time of sale.
Since 1921, section 1031 has authorized taxpayers to exchange their investment or business-use assets for other business-use or investment assets without tax liability on the sale of the older assets.
If specific requirements are met, a 1031 exchange enables an investor to defer paying federal capital gains tax, net investment income tax, state regular income tax, and depreciation recapture on the sale of an investment property. These are the 1031 Exchange rules you need to be aware of:
There are many benefits to choosing a 1031 exchange, including the following:
A "1031 Qualified Intermediary" (QI) is typically needed if you, as a property owner, want to sell an investment property to defer taxes via the 1031 tax-deferred exchange. The services of a QI are employed to complete the required paperwork, hold your exchange funds safely, and purchase your new investment property before transferring the relinquished property.
Although QIs are not subject to federal regulation, there is an industry trade association, the Federation of Exchange Accommodators (FEA), for the sector. Many trustworthy and reliable QIs are members of this association.
You shouldn't rush your decision to go ahead with a 1031 exchange because there is a lot at stake. We can help if you're considering real estate investment through a 1031 Exchange using a Delaware Statutory Trust (DST) to defer capital gains taxes and generate long-term gains. Consider us your 1031 advocates; we are here to bring clarity so you can get the most out of your investment property transaction.
Using this Contact Us form, you can schedule a consultation with the Pivot Professional Partners team regarding 1031 or 1033 exchange rules and determine whether your property qualifies. If you prefer to discuss your requirements regarding the 1031 Exchange process over the phone, feel free to speak with our experts at (631) 275-1444. While a 1031 is considered a tax strategy, we are not tax advisors, and you should consult your tax professional before investing.