A 1031 exchange gets its name from being defined in Section 1031 of the IRS Code, and it is in essence, a strategy which legally permits an investor to defer paying capital gains taxes on any sold investment property, assuming that another like-kind property is purchased using profits from the sold property. Although the tax savings aspect is often the aspect most strongly considered by participants, it isn’t the only advantage which falls to the investor. It also allows you to shift your investment focus without getting hit by the tax liability.
As an example, consider the scenario where you’re investing in low-income, high-maintenance properties. The high-maintenance investment could be exchanged for one that is a low-maintenance investment, without having to pay a ton in taxes. You might also want to re-position your investments from one spot to another without incurring the attention of the IRS. With a 1031 exchange, you could easily accomplish either of these goals without being saddled with a huge tax bill that would tend to nullify the benefits.
1031 exchanges in the San Diego area
There are literally thousands of properties in the area around San Diego which could be considered prime candidates for a 1031 exchange. Properties in Mission Valley, Old Town, Pacific Beach, Bankers Hill, Central San Diego, Hillcrest, Clairemont, City Heights, Mira Mesa, Ocean Beach, or North Clairemont all have fantastic opportunities for a 1031 exchange. In order to find the best properties for such an exchange, and to legally arrange the purchase as an exchange for tax purposes, it will be necessary for you to retain the services of a Qualified Intermediary.
Sunset Real Estate Services has served in the role of Qualified Intermediary on numerous occasions in the past, and we would be glad to fulfill that same role for you on your next real estate transaction. Our experience and knowledge about the IRS Code will be just what you need to navigate the tricky legal waters of this kind of exchange, so you won’t have to worry about adhering to the actual legal restrictions. Contact us when you’re ready to arrange one of these exchanges, and we’ll be sure to act on your behalf, so you realize all the advantages of conducting a 1031 exchange.
San Diego Real Estate 1031 exchanges
You may want to take advantage of some other services which we provide in addition to 1031 exchanges. We are also available for consultations as a financial advisor in the real estate arena, so you can find the very best deals in the region around San Diego. If you’re not a hands-on type of real estate investor, we can also manage the property on your behalf, so you won’t have to worry about the daily details of running an apartment complex or other rental property. Whatever your real estate needs may be, we can probably help you achieve your goals and objectives, so you can focus on finding your next big transaction instead of the issues which might pop up each day. Contact us today, so you can maximize your investments, and minimize the hassles involved with them.