Do you own appreciated real estate that you are currently selling or considering selling? If so, do you know the tax liability that will result from the sale? Paying taxes on the sale of an investment property can be very expensive. In some states, the total amount of tax can be as high as 42.1%.
The good news is that you do have options to reduce, defer, and even eliminate capital gains taxes. With a tax-deferred 1031 Exchange, investment real estate owners can sell their existing property and defer paying capital gains tax, as long as they reinvest in replacement property(s) of equal or greater value. Additionally, for many investment property owners, a 1031 Exchange also allows for a transition to passive management while improving monthly income potential and diversifying their real estate investments.
A 1031 Exchange is undeniably one of the most generous sections of the tax code and can be used in many ways, however, 1031 Exchange rules are very strict and must be followed closely to qualify for tax deferral. This is why it is important to work with a licensed 1031 Exchange Advisor.
A 1031 Exchange Advisor should not only help you find, select, and acquire a quality 1031 Exchange replacement property, but also assist you in navigating the 1031 Exchange rules, debt matching requirements, and addressing property ownership issues. There are many 1031 Exchange companies to choose from; however, like in any industry, the level of expertise, years of experience, client focus, due diligence, and services offered can vary greatly from company to company.
Navigating the Exchange process successfully can be challenging and complex. As one of few fully-integrated 1031 Exchange companies in the Pacific Northwest, Real Estate Transition Solutions guides you through 8 key steps in the 1031 Exchange process. Our team of dedicated licensed 1031 Exchange Advisors will help you determine if a 1031 Exchange is right for you and then carefully select and acquire suitable 1031 Exchange properties that meet both your financial and lifestyle objectives.
Based in Seattle, Real Estate Transition Solutions has over 26 years of experience working with investment property owners and their holdings, utilizing 1031 Exchanges, Delaware Statutory Trusts (DSTs), and designing tax-efficient transition strategies. Our approach is centered around understanding a client’s unique objectives, educating clients on all available options, and proposing strategies that will best accomplish their objectives in a tax-efficient manner.
There are many Exchange strategies and replacement property options available to investment property owners, including Fee-Simple real estate, Net-Lease properties, Delaware Statutory Trusts (DSTs), Tenant-In-Common (TIC) property, and Real Estate Investment Trusts (REITs). Finding the right replacement property can be challenging. The Exchange process can be complex and presents many opportunities to make costly mistakes, resulting in either a failed 1031 Exchange or the purchase of replacement properties that are not suitable.
Our 1031 Exchange team will work with you to identify suitable 1031 Exchange properties based on your individual objectives and financial position. We provide you with all the options available and have a rigorous process in place to vet both the replacement property options and the real estate firms sponsoring and managing those 1031 Exchange options.
Is a 1031 Exchange right for you? Find out by scheduling an informal, complimentary consultation with our 1031 Exchange team. Consultations can be done over the phone, via web meeting, or in person at our office in Mercer Island, WA, or Portland, OR. Call 888-755-8595 or email us at firstname.lastname@example.org