Well-known for handling sophisticated real estate transactions, RSP attorneys are experienced in structuring and implementing tax deferred exchanges under Section 1031. We advise clients in navigating through the concept that a Section 1031 like-kind exchange permits real estate investors to dispose of qualifying property without being obligated to pay federal income taxes on any gain arising from the transaction.
The gain on a Section 1031 exchange is not recognized at the time of sale. Taxes that can be deferred include capital gains taxes, depreciation recapture taxes, passive investment taxes, and in most cases, state income taxes. RSP attorneys help our clients reinvest funds from the sale of one property in another like-kind property, so they can continue to receive an investment return on those funds.
RSP attorneys structure and implement tax deferred exchanges on behalf of clients including limited liability companies, corporations, trust, and other entities, as well as individuals.
We provide counsel on timing considerations, valuations of relinquished and replacement properties, and the regulations governing exchange proceeds. We help client navigate the complexities of each stage of tax deferred exchanges, to meet all requirements of such transactions and avoid unexpected and substantial tax liability. Our attorneys collaborate with our clients to position Section 1031 exchanges as a solid investment strategy that can be used in successive transactions as a key to growing wealth.