1031 Exchange HelpFree List of Available Replacement Properties
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We specialize in answering investors 1031 exchange questions and finding investors the best available 1031 replacement properties.
1031 tax exchanges are very often the best tool for property owners and the top choice for many when exchanging between real estate investments. The 1031 exchange concept can be applied to various types of assets, such as: real estate (not your primary residence), heavy equipment, business resources, artwork and aircraft. We specialize in providing 1031 exchange support for various types of commercial and residential properties. We also guide our clients in deferring Federal and State capital gains taxes as well depreciation recapture when buying and selling investment properties according to section 1031 of the IRS code. Unfortunately there is little that we can do for someone with any amount of short term capital gains taxes. We can also help you find a Qualified Intermediary company to facilitate the complete process of a TIC Exchange. An investor needs to be familiar with and consider the following common issues before entering into an exchange:
The entire process must be completed within strict time limits. The Exchanger has a maximum 45 day window from the date the relinquished property closes to "Identify" potential replacement properties. In order to defer taxes using an exchange, you must send a written notification to the Qualified Intermediary listing the addresses or legal descriptions of the potential replacement property and/or properties. The purchase of the replacement property must be completed within 180 days after the close of the relinquished property. After the initial 45 days has passed, the Exchanger may not change his/her property identification list and must purchase one of the listed replacement properties or the exchange fails!
If you would like to learn more about the entire exchange process please check our 1031 exchange page and talk to your accountant.
TIC Investments: TIC’s make it possible for an individual investor to become a buyer of investment-grade buildings often with a good tenant or multiple tenants in mulifamily previously available only to professional investors and organizations. We can help you find TIC properties nationwide with the potential to:
The investment in a TIC property is an alternative to sole ownership of real estate. There are common risks associated with the ownership of real estate. As with any investment, there are various risks including, but not limited to: loss of principle; variations in tenant occupancy, which may negatively impact cash flow; illiquidity; and limits on management control of the property. However, investing in TICs offers certain benefits including lower investment minimums compared to NNN real estate investments, lower overall risk, lack of active property management by owners and the ability to use exchange money to invest. Unfortunately, the common real estate broker out there does not understand these deals. We reccomend that you talk to one of our 1031 exchange experts.
May I combine a 1031 property exchange with a TIC?In March of 2002 the IRS issued Rev. Proc. 2002-22. This Rev. Proc. outlines the parameters under which structured TIC arrangements would allow investors to accomplish a 1031 TIC exchange and be recognized as valid like kind investment property. This is important because TIC properties, when correctly planned, may now be used as 1031 replacement property for purposes of a section 1031 exchange. For most people the 1031 tax exchange - TIC concept is nothing new. Tenant in common is just a means of co-owning real property. When properly organized, an investor may now 1031 exchange out of 100% ownership in a relinquished property and exchange into a fractional ownership of replacement property commonly known as a TIC. The investor will then receive a deed to their share of the real estate. The 1031 tax exchange replacement property will typically be a larger piece of commercial real estate such as a shopping center, office building, or an apartment complex. The new property, now owned by many TIC owners, is usually professionally managed. These investerments are considered by many to be a hybrid deal because the IRS views them as real estate while the SEC (Securities Exchange Commission) considers them securities. For this reason, the sponsors of TIC properties usually issue a prospectus when offering tenant in commonproperties for sale. In the coming months and years, it is highly probable that ownership of many large commercial properties will shift to the TIC form of ownership. It is often strategically advantageous for tenant in commoninvestments to be identified as back-up replacement property in their 1031 exchange transaction rather than only identifying only one or two possible replacement properties. If you would like to be contacted regarding our replacement property services, please fill out our online form with your contact information. We will respond within 24 hours. Most frequently asked questions (FAQs):
Tenant in Common Investments - Real Esate or Securities?Many Tenant in common (TIC) deals have been under the control of the Securities and Exchange Commission (SEC) since 2002, which meant that only people with securities licenses could sell securitized TICs. However, because the goods being exchanged are real property, the National Association of Realtors (NAR) has been lobbying for an equal opportunity to sell Securitized tics. After much negotiation with the SEC, the lobbying efforts of NAR are finally paying off. It appears as thought its just a matter of time before real estate brokers will be able to offer securities TIC deals to clients and receive a commission. Learn more at: www.NARexemption.com This is exciting news for realtors across the nation because the demand for TIC deals is increasing, and now real estate brokers can finally provide TICs as an option for their clients. Many people are interested in TIC deals because they offer a hands-off, shared property ownership as a way to defer capital gains taxes. When someone is facing high capital gains taxes with the sale of his property, it is common practice to roll the money into another property, thus deferring those taxes. However, many people do not want the hassles that come with property management, such as building maintenance and dealing with tenants. Therefore, a popular alternative is to exchange into a fraction of a property and avoid the headaches that come with managing the property yourself. Soon NAR will have an equal opportunity to offer securitized TIC deals to their clients under the newly approved NAR exemption, realtors and their clients will be looking at the attractive possibilities that this new TIC exemption will offer. As soon as this new exemption is passed into law, we will offer real estate brokers referral fees on securitized TIC deals. |
