Many times a 1031 exchange is utilized when clients have sold a property and wish to buy another.
In a 1031 exchange, you can defer the capital gains by using an intermediary. It’s important that you don’t access or have any control over the funds. An intermediary will purchase the property you want to buy. By utilizing a 1031 process, you can defer the capital gains tax A 1031 has to be between two like-kind properties. If you have lost your property due to a natural disaster or eminent domain and the government has issued you a check that you deposited, a 1031 exchange is problematic.
A 1033 allows you to purchase a like-kind property and any capital gains can be deferred to a later date.
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At Webster & Garino LLC, an Indiana lawyer will thoroughly research your concerns and objectives while drafting your 1031 or 1033 exchange. We have the resources to assist you in any aspect real estate law in Indiana. Visit websterlegal.com or call 317-565-1818.
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