Newsletter 2014
Newsletter 2014
Section 1031
Section 1031
Print Full ArticleLast Reviewed: Jan 2015
Last Modified: Jan 2015
Before the Great Recession we reported many Section 1031 real estate transactions. After about 2008 this reporting basically disappeared. It seems that people are making money buying and selling real estate again in our region and our expectation is that Section 1031 reporting will pick up again. So what is Section 1031 all about? It is all about deferring tax on gains. To use Section 1031 you need to reinvest the gains from the sale of real property into property that is deemed "like-kind property." There is not a lot of mystery to this in the real estate realm. Pretty much any type of real property configuration on either side of the sale or purchase will work. There are many technical details to a Section 1031 transaction and there used to be an entire sector of the financial industry that serviced these types of transactions with specialized knowledge. As the amount of real estate gains increases there should be a revival among these professionals. If you think you might want to use a Section 1031 exchange to change the location, type or size of your real property investment you should begin the process well in advance of your target sale date and let the professionals you are working with know this is your intention. This will give them time to assemble the resources they will need to insure you meet the Section 1031 requirements.
