Trades (1031)

Taking advantage of the tax deferral allowed on gains on sales of properties traded for like kind property is a tremendous way of keeping assets working for you in the next property instead of paying them out in taxes today. The 1031 process requires sensitivity to timelines, skills at locating properties to acquire that are a fit during a short calendar window, and the experience to keep all the pieces together for the exchanger.

Kevin and people he works with bring the range of expertise to the exchange process to professionally assist sellers in appropriately trading up. While it needs to be “like kind”, it may be property with different characteristics than the property being sold. Many people desire property that requires decreasing amounts of personal involvement as their asset base increases, and there are many options to consider.

The place to start when considering an exchange is to clarify your personal goals for the next investment and then match that to the real property asset and ownership mechanism is the best fit. With this groundwork done before marketing the building you're trading out of, you're more likely to close a transaction with which you're satisfied. You may even have the resources to accomplish a “reverse exchange”, buying the building you want to trade into ahead of the sale of the property you're trading out of (through the facilitator, of course).

The main thing is to go through a process that looks at the alternatives against your objectives to ensure the best fit for your changing life and portfolio going forward.

For more information on using Grossman Services for your sales and acquisition needs, please call or email Kevin at 206.730.5567 or kevin@kevingrossman.com