1031 Tax Deferred Exchange Consulting
When you are looking to sell an investment property without incurring taxable gain, a tax deferred exchange may be just the right solution.
Ghirardo Real Estate Group has the knowledge and experience to seamlessly guide you through the process, no matter how complex your particular transaction.
As outlined in IRS Code Section 1031, income tax on profits from a property sale can be deferred if the property is “exchanged” rather than sold. An exchange will allow you to dispose of property without incurring current income taxes and allow you time to identify and acquire a replacement property.
You don’t even have a limit to the number of 1031 deferrals you can make in a lifetime. In fact, under current law you can defer gains forever (that’s right, a “permanent” deferral) and thereby pass on much greater after-tax wealth to your heirs!
When you are thinking about selling a property, consider exchanging it first. We can answer your tax-deferred exchange questions and assist you with the process so that you don’t incur taxable gain.
Meet with Ghirardo RE
Call or email Ghirardo Real Estate Group (Ghirardo RE) on the following items.
List Strategy
Discuss strategy and timing of listing. Depending on the location and property type, Ghirardo RE may be able to list and market the property for sale itself or refer you to an appropriate listing agent if you don’t already have one.
Engage QI
Introduce you to a Qualified Intermediary (QI) to receive the proceeds from your sale so as to avoid a taxable event.
New Property Target(s)
Meet to discuss ideal replacement property criteria (location, property type, level of management, cash flow vs appreciation, etc.)
Sell Your Property
Sell your current investment or business property (relinquished property).
List Property
Either Ghirardo RE or another broker lists your property for sale.
Under Contract
Your listing broker (possibly Ghirardo RE) negotiates the highest possible sales price, and then guides you (the seller) through the entire due diligence process.
Close of Escrow / QI Receives Funds
Close on the sale of your relinquished property using a QI to receive the proceeds so as to avoid a taxable event.
Buy Replacement Property
Buy new property or properties (replacement property), following all IRS rules to qualify for a full or partial 1031 exchange.
Replacement(s) Search
Ghirardo RE will perform a nationwide search for properties that fit your target replacement property criteria. We have a wide breadth of locations, property types, and investment structures that will qualify as ideal 1031 replacements to match your desired objectives. Our team of CPAs and analysts will assist in analyzing your 1031 tax savings and projected cash flows (both pre-tax and after-tax). Note that the IRS deadline to identify (ID) all replacement property targets is just 45 days after your relinquished property closes.
Enter into Purchase Contract(s)
Ghirardo RE will make and negotiate offer(s) on your behalf on your hand-selected targeted properties. If our offer is accepted, we will move to property due diligence.
Perform Due Diligence
Once we enter into contract on replacement properties, Ghirardo RE will act as your due diligence quarterback through inspections, appraisals, loan docs, lease review, etc.
Close on Replacement(s)
Close on replacement properties once due diligence has been completed. Note that the IRS deadline to close on all replacement properties is no later than 180 days after the close of your relinquished property.
