We recently blogged about the use of IRS 1031 as a preferred strategy for active real estate investors that wish to defer their capital gains liability. In its current form since 1986, a “1031 exchange” is a guideline for selling one qualified property and then buying another qualified property within a specific period of time. While a “1031 exchange” enables investors to reinvest funds which otherwise would have been paid to the IRS, the specific timeline for compliance with IRS 1031 is often problematic. It’s not often likely an investor can identify a suitable exchange property following the sale of an asset within the 45 days allowed by the IRS.
Northeast Private Client Group