The tax deferred exchange is a very unique marketing alternative available to owners of real estate today. IRS Code Section 1031 provides a way to move ownership from one property to another without any immediate tax liability. Exchanging is an excellent method of pyramiding your real estate holdings without paying taxes. It is even possible to raise cash, tax deferred during the exchange. The exchanging of property, while being very beneficial, also requires much planning.
An exchange normally requires a third party who buys a property, a seller and the person who receives the tax deferred exchange property. Location of acceptable properties for all parties, balancing equities and arranging financing as needed are all vital parts of a proper exchange. The Heller Group staff has been handling tax deferred exchanges for a number of years. If you feel an exchange could benefit you, talk to us first. It could save you many tax dollars.