Are you frustrated because you can’t find the best replacement property to defer capital gains taxes? Fortunately, Pivot Professional Partners is here to facilitate the process and ensure you have a rewarding experience.
Pivot Professional Partners is a qualified intermediary with expertise in 1031 exchange and like-kind exchanges (real estate or other business investments). We streamline the process to help you minimize taxes and maximize the value of your investment. With our experience, knowledge, resources, and drive, we're here to guide you through the whole process of deferring capital gains tax.
Similar to the 1031 exchange, the Internal Revenue Code (IRC) Section 1033 allows taxpayers to defer capital gain taxes if the owner reinvests the proceeds from their involuntary conversion into a like-kind property. It permits a property owner to trade depreciable assets with similar values to gain relief from tax liability.
This process is done when there is loss from a casualty (fire, natural disaster, etc.), destruction, theft, or eminent domain seizure, and there is no marketable disposition. The 1033 exchange acts to facilitate a tax-deferred exchange of real property held for productive use in a trade, business, or investment. Investors often take advantage of this exchange requirement to roll over their net equity amount into a new real estate that has the same debt-leverage ratio.
However, the replacement property must be similar to the lost property or converted property. You cannot replace a grocery shop or a restaurant with a vacant lot. Unlike, the 1031 exchange, you are not required to have a qualified intermediary. During the exchange period. you can keep the proceeds in your personal bank, invest in the money market, or put it in your investment accounts while looking for the ultimate replacement property.
In a 1031 exchange, you have up to 180 days after closing the relinquished property to acquire new real estate. For 1033, however, lost property is given a two to three year replacement period. The duration begins at the end of the year in which the conversion was made. To avoid any unnecessary delays, you must understand the process for pursuing a 1031 and 1033 exchange.
As leaders in the industry, we encourage you to follow this process to navigate the 1033 exchange process with ease.
To receive access to our expert professional advice and guidance, you need to create an account with us. In the process, you will answer some questions regarding your exchange. Then, our experts will determine if you qualify for an exchange with 1033 DST/TIC properties. Your account will serve as your pass to access our resources and connect to our team as you will have access to a seamless and personalized experience with us.
Once you have created an account and logged in, you can start looking immediately for the perfect real estate investment. We have integrated a safe online platform that allows for fast and simple browsing of all our 1031 and 1033 investments. With the use of our premium library of high-end sponsors, you can easily find a qualified replacement investment.
To ensure the success of your 1033 exchange, we believe you must partner with a veteran team that has decades of experience in the industry. Once you know the property you want to exchange, finding the right Pivot Professional Partner can make all the difference. You can place your trust in us and rest assured that we'll do everything in our power to make the transition as smooth as possible.
Partnering with our competent team assures you of a successful transaction. As your partner in facilitating 1033 exchanges, we offer you the resources and strategies to handle everything from start to finish, so you can focus on running your business. Get started today!