When you are a business owner and decide to sell that business, or you want to sell a piece of farmland or some other type of investment property, it is not at all uncommon to have a fairly decent profit from that sale. In most cases you are required to pay tax for the total amount of that gain. IRC Section 1031 is one of those obscure tax codes most people do not know about, and it allows for an exception that makes it possible for individuals to postpone paying taxes on that profit. The catch is you have to reinvest the proceeds in a qualifying and similar type of property investment. Capital gains in this type of set up, which is known as a 1031 Like-Kind Exchange are designed to be recorded as a tax-deferred exchange. We have years of experience working with 1031 tax exchanges in Davenport, IA, and we are ready to go to work for you.
Tax Experts in Your Corner
Positioning and constituting an exchange is a very complicated thing to navigate and is an overwhelming endeavor. Generally speaking, there are four key parties who are going to be involved in this process: the taxpayer selling the property in order to buy another piece of property; the buyer for the property; the seller who owns the new property that will be bought; and a qualified intermediary who oversees the official exchange of funds. In the normal process, it is the taxpayer who will transfer the title of the property to the buyer, and they then will turn around and pay the QI in cash. The QI then gives the money to the seller who transfers the title into the name of the new owner.
Contact Us Today
If this all seems confusing to you, you do not have to go at it alone. Call DJF Exchange today to get started!
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