Tax liability is an ever-present challenge. Our goal is to help you minimize tax liabilities associated with your real estate transactions, making use of like-kind (1031) exchanges or other tax-free options, such as simultaneous, deferred, and reverse exchanges.
Income and estate taxes play a critical role in real estate planning and transfers. Navigating through the intricate safe harbors established under Code Section 1031 for deferred and reverse exchanges requires close attention to detail and should be done with an attorney’s assistance.
Other tax planning devices include:
- Installment sales – any gain may be deferred over a number of years
- Maintaining "investor" as opposed to "dealer" status – the capital gain rather than ordinary income treatment can be achieved
- Valuation and gifting of partnership or membership interest to family members for estate planning purposes so as to reduce estate taxes
- Section 1031 options:
- Qualifying tenant in common ownership
- Combining estate planning gifting programs incident to tax free exchanges
- Parking real estate for the purposes of doing "build to suit" construction prior to completing exchanges, particularly appropriate for operating companies, which are relocating to new facilities and cannot suspend operations.