Internal Revenue Code Section 1031 exchanges are arguably one of the most powerful tools one can use when selling or purchasing land, however, they can also be complicated, and to successfully utilize this tax deferring tool, you need to use an expert.
A tax-deferred exchange is a method by which a property owner or investor trades one or more relinquished properties for one or more replacement properties of “like-kind” while deferring the payment of federal income taxes and some state taxes on the transaction.
There are three common types of exchanges including a simultaneous exchange, a delayed exchange, and a reverse exchange. Some qualifications and certain limitations may apply to subject properties. An expert will be able to guide you through this process and ensure that you get the most out of your 1031 exchange.
Our extensive expertise with 1031 Exchanges has helped many of our clients effectively utilize this tax deferring tool in their real estate transactions. Questions about 1031 exchanges? We would be happy to assist you. Please contact us at 307-684-5201 or by e-mail at info [at] pfisterlandco.com.