Real Estate Transactions To Reduce Your Taxes
Like-kind exchanges of real estate (also known as 1031 exchanges for their chapter in the Internal Revenue Code) allow for taxes on the sale of investment real estate to be deferred. Simply put, these transactions offer property owners significant savings.
Yet like-kind exchanges can be difficult to enact. They require compliance with very specific rules, and must take place within a rigid time frame. The attorneys at Wiener and Wiener LLP have more than 60 years of experience representing property owners in these transactions; we help our clients navigate the process and avoid missteps.
Call 610-821-8600 to discuss your unique circumstances in a confidential consultation. From offices in Allentown and West Palm Beach, we serve clients in both Pennsylvania and Florida.
Like-Kind Exchanges Take Many Different Forms
In some cases, a like-kind exchange can be arranged so that one property is sold and a replacement property is purchased simultaneously. More often, these transactions involve forward exchanges in which a property is sold and the replacement property purchased within a 180-day window. Occasionally, the property that you want to purchase needs to be bought before the sale of your existing property can be closed, and a “reverse exchange” procedure is used to allow for the deferral of the gain.
Our lawyers are skilled in facilitating all of these transaction types. We are able to ensure your exchanges are handled smoothly and in compliance with IRS rules and regulations.
The Benefits Of Net Lease Investments
Investors looking for real estate investment without the obligations of actively managing property can benefit from the ownership of investment-grade triple-net lease property. In such arrangements, the real estate is leased to a high-credit tenant on a long-term lease, and the tenant bears all of the responsibility for the property’s operation, maintenance, taxes, repairs and improvements. As such, triple-net leases provide a way to own real estate without taking on the majority of maintenance and operational issues.
However, these transactions often have very short periods of time for due diligence and closing, and it is imperative to obtain qualified help. Our firm has significant experience representing both buyers and sellers in net lease considerations. We are skilled in negotiating leases and have developed a record of successfully closing transactions on expedited time frames.
Using Triple-Net Leases In 1031 Exchanges
Many like-kind exchanges involve investment properties, including office buildings, shopping centers, apartment complexes or industrial real estate. For sellers wanting to take advantage of the tax deferral, but also wanting to reduce their property management responsibilities, the use of a 1031 exchange to purchase a net lease property offers the chance to realize both these goals. Namely, such transactions allow one to retain investment property, receive a tax deferral on the sale of real estate and avoid burdensome management obligations.
Our firm is adept at helping our clients to facilitate these transactions.
Bolstering Your Portfolio
Real estate investments are more stable than most, but still carry risks. In all matters, we assist our clients as they undertake their due diligence, ensuring that their holdings and contracts do not contain hidden hazards.
To learn more about our services, schedule a consultation with our team. You can call us, or arrange an appointment online. We practice throughout Pennsylvania.