Under a §1031 tax deferred exchange, a property owner trades one property for another without having to pay any federal income tax on the transaction.
John Kennedy is well versed in the details of the exchange process. Over 90% of his business since 1990 has been assisting clients with the selling and buying aspects of §1031 tax deferred exchanges.
Our clients have various reasons for conducting a tax deferred exchange:
- Defer taxes, allowing reinvestment of a higher percentage of sale proceeds.
- Re-leverage to improve both loan-to-value (LTV) percentage and interest rate/terms.
- Move equity to newer property, better location, or both.
- Consolidate smaller properties into larger property for better management or operating efficiencies.
- Transfer from non-income producing real estate to income producing real estate (e.g., land to apartments).
- Multiple owners divest ownership of a single propertly and exchange separately.
- Estate planning may require exchanging into similar properties for equal distribution.