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Do you need assistance with our 1031 tax exchange deal? Call Gourley Law Group!
If you’re expanding your real estate investments, you may have heard of a 1031 tax exchange. This kind of exchange is a great way to take advantage of growing your real estate portfolio while deferring tax obligations. Many people take advantage of this process and it has worked well for countless individuals.
Keep in mind that this process is very complex and you should not pursue it on your own. If you are looking to take the 1031 tax exchange route, you need more than just an interest. Having an experienced tax law exchange lawyer guide you through this process is critical to your success. There are many caveats and special circumstances to consider when it comes to any tax law.
Gourley Law Group can help you understand your options. Founded in 1991 by Attorney B. Craig Gourley, our firm has built its foundation on guiding clients through tax, business, and real estate law. Although we’ve expanded our practice areas since our inception, we are still one of the best choices in Snohomish County, WA for 1031 tax exchange assistance.
We want to help you understand all of the possibilities available to you through this tax deferment option. Gourley Law Group will first help you decide if this is the right fit for you, then get started right away on a strategy that works. If you choose to proceed, we will be with you every step of the way. Our consultations help to gauge the scope of services that would most benefit you.
If you have experience in real estate, as a buyer, seller, agent, or investor, you are most likely familiar with a 1031 tax exchange. However, if you are just starting in real estate, you may not fully know what it is.
A 1031 tax exchange is a way to defer the tax obligation of buying real property. With this transaction tactic, taxpayers can “exchange” one property for another. This strategy is also called a like-kind exchange because the property you pick has to be the same like-kind as the one you are swapping. With this process, you will be able to defer state and income taxes, as well as capital gains.
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In Snohomish County, WA a 1031 tax exchange is a tax deferment tactic used to mitigate the expenses of acquiring real estate property. Often through the purchase of property, individuals are hit with high associated expenses, such as capital gains, and state, and income taxes. While these expenses are tolerable, there is a better way to handle them.
Under IRS code 1031, taxpayers can exchange one investment property for another. While this may sound too good to be true, it is completely fair, accurate, and by the book in terms of legality. However, there are policies and procedures in place to ensure that these deals are carried out with due diligence.
One of the stipulations is that the property being exchanged is the same like-kind as the replacement. It is important to note, however, that the IRS does not specify what the term like-kind means. Within the context of the 1031 tax code, like-kind typically refers to the type of property. So real property can only be exchanged for other real property. Thus, real property couldn’t be exchanged for personal property.
One of the stipulations is that the property being exchanged is the same like-kind as the replacement. It is important to note, however, that the IRS
does not specify what the term like-kind means. Within the context of the 1031 tax code, like-kind typically refers to the type of property. So real property can only be exchanged for other real property. Thus, real property couldn’t be exchanged for personal property.
There is no stipulation on who is eligible to participate in a 1031 tax exchange. However, keep in mind that to remain in compliance with the code an independent third party must be in control of the proceeds at all times.
If you were to transfer the sale proceeds of a property into your account, you would be violating the 1031 tax exchange code. Although tax benefits are a key factor in determining whether or not you want to participate in a 1031 tax exchange, there are other reasons to take advantage of this real estate strategy.
If you want to diversify your investment portfolio or exchange an asset for one of higher appreciation, the 1031 tax exchange is a good tool. Our experienced tax-deferred exchange lawyers can help you decide what is best for you. We know what options pertain to what situations and are happy to assist you in understanding what works for your goals.
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As mentioned, the 1031 tax exchange process can be tricky to navigate. While it seems easy enough, there are several nuances to take into account. Don’t be overly confident in your ability to understand the law if you’re new to this kind of process. Your best course of action is to contact an experienced tax-deferred exchange lawyer.
Gourley Law Group can help guide you through your 1031 tax exchange experience. We will be able to help you assess what kind of implications your real property exchange has for you. We’ve helped many clients navigate their transactions and stay well within the guidelines of the law.
Gourley Law Group | Snohomish County, WA
Do you need help understanding the 1031 tax exchange process in Snohomish County, WA? Our firm can help!
Gourley Law Group has had the opportunity to work with many clients new to the 1031 tax exchange process. Even if you’ve had experience with this tax deferment strategy before, we can help you. With our knowledge and dedication, you’ll be in good hands.
Remember, not all situations are the same. If you are new to this process try to keep an open mind so that you can understand all of the nuances within the 1031 tax exchange laws. We are here to help you make the best decision for you.
While we bring the experience necessary to understand and execute, ultimately you will make the decision that is best for you. Let us help you get all of the information you need, starting with a free consultation. Call (360) 323-2885 to schedule your appointment today!
Call Now For Expert Assistance(360) 323-2885