IRC 1031 Exchange Provides Tax Benefits to Real Property Investors

by | Oct 17, 2019 | Lawyers and Law Firms

As an investor, a sizeable increase in taxable property gain when it comes time to sell can significantly impact your profit. In some cases, capital gain tax can exceed upwards of 20-30% making the benefits of a legitimate 1031 Exchange even more apparent. In simple terms, a 1031 exchange is a section of the Internal Revenue Code that permits real property owners the ability to sell and reinvest the proceeds in the purchase of a like kind property, effectively avoiding the need to pay taxes on the sale. While this may seem straightforward enough, as is a recurring theme in all things real estate, it is quite a complex process.

Legal Professionals Can Help Ensure Your Property Qualifies

With a wide range of stipulations that need to be met to ensure validity, enlisting the help of experienced IRC 1031 Exchange attorneys can go a long way in laying the foundation for a successful process. The law firm of David J. Franks is one such legal office that specializes in real estate transactions involving 1031 Exchange in Davenport, IA. Their legal team can help you determine whether or not you quality for a 1031 Exchange and offer their expertise in structuring an exchange to suit your best interests in the situation.

Save Your Capital and Avoid Paying Penalties and Interest

In some cases, if guidelines and requirements are not properly adhered to property owners can find themselves held liable for not only sales taxes but also penalties and interest. Which may in fact end up costing you more money than if you were to enlist the help of legal professionals from the beginning. Consider contacting the law offices of David J. Franks if you are interested in taking a proactive legal stance in your real property investments. Their team can help you ensure you meet the necessary qualifications while making certain all documentation is filed correctly and on time.

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