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If you are looking to exit a real estate investment, skip the tax square and head straight to the next investment with the help of a skilled lawyer and a 1031 tax-deferred exchange.
Everett is not exactly the most exciting spot to be investing in real estate. It's not in a slump or anything, but it is hardly booming either. Some recent shifts, such as toward greater regulations for short-term rentals, might even have you worried about your investment, or at least, looking at greener pastures elsewhere.
But you might be reluctant to sell one investment to put money into another, with the prospect of taxes cutting into your profits looming over the process. Fortunately, as long as you are sticking to real estate investment, there is a good chance you can avoid those taxes with a 1031 tax-deferred exchange.
For both real estate investors looking to put money in Snohomish and those hoping to pull it out, a 1031 tax-deferred exchange offers an ideal method. With the help of a good lawyer, you can turn capital and returns from one investment into another without paying any taxes (yet) on the gains you’ve been making. Allowing you to both grow and move your real estate investment around.
The US wants to encourage investors to keep investing, it powers the economy after all. That is why federal tax rules allow you to sell one real estate investment property without paying most taxes on it, but only if you reinvest the funds directly into a new “like-kind” investment. This is the 1031 exchange.
Like-kind means that real estate investments must be exchanged for other real estate investments; it does not mean they need to be the same exact kind. If you own several rental properties in Seattle, but you are getting tired of the absurd protections given to your tenants, you could shift to a single large-scale commercial real estate property in a friendlier county, or even another state. Indeed, you can change the number, type, location, and other details about the investment and still qualify for a 1031 exchange.
The advantage of such a 1031 exchange is, as the name suggests, delaying the need to pay taxes on the real estate investment you are selling. With a properly executed 1031 exchange, you can delay the need to pay income tax, state taxes, or capital gains taxes on the property. Doing so allows you to channel all of those savings into the new investment.
The process, however, for pulling off a 1031 exchange is delicate and complex, which is why the safest approach is always to work with an experienced lawyer.
Call Now For Expert Assistance(360) 203-1941
1031 tax-deferred exchanges are not the kind of project you can pull off without prior experience. The rules and regulations governing such transactions are taken very seriously by the IRS and other agencies, and your transactions could be closely examined. Additionally, the mechanisms, both legal and practical, for pulling them off are complex, which is why you want yours handled by an expert.
Craig Gourley is just such an expert. He has published and written extensively on the topic and is considered an authority even among other real estate professionals and attorneys. By working with his law firm, the Gourley Law Group, on your tax-deferred exchange, you will:
1031 exchanges should not be handled personally; if there is even a hint of money or other gains going to you (even if they are later transferred out of your account), you may be disqualified. Instead, you should always work with a qualified intermediary who can organize everything and ensure a smooth and compliant transaction.
We have acted as qualified intermediaries on countless real estate and other 1031 tax deferred exchanges, helping ot ensure both a seamless transfer of ownership, and the level of transparency and regulatory compliance the IRS and federal government demand for the 1031 exchange to be accepted.
A minor mistake when trying to pull off a 1031 exchange can easily cost you the savings it might have offered, and major mistakes could come with accusations of fraud or even penalties. Working with an experienced attorney at a law firm like ours allows you to proceed with dramatically reduced risk.
From the type of property to the details of each transaction and the extensive paperwork involved, we handle the fine print and technical elements so that you can be confident in your chances of success.
While we are more than happy to help you through any individual 1031 exchange, the most profitable and savvy real estate investors, in Everett or otherwise, rarely stop at 1. Due to the deferred nature of the gains on the exchange, the more often you grow and transfer your investment, the better your long-term outcome is likely to be.
As your lawyers we will not only be able to supervise the process, but provide you clear advice on how to find the right deals, invest anywhere (not just in Everett) in Snohomish County, Washington, or anywhere in the US, and optimize the growth, consolidation, or expansion of your investment.
Call Now For Expert Assistance(360) 203-1941
Gourley Law Group | Legal guidance for major financial decisions and opportunities, including 1031 exchanges.
If you are tempted by a 1031 tax exchange, dreading the impact of taxes on your latest investment, or simply seeking to move to an investment property into or out of Everett and Snohomish County, you have come to the right place.
Just call (360) 203-1941 to set up a consultation to discuss the nature of your investment and possible transactions. You can also reach out online and start the process that way. Either way, we look forward to helping you take this next (profitable) step in your investment journey.
Call Now For Expert Assistance(360) 203-1941