What is 1031 Exchange?
A properly structured “1031 exchange,” also called a “like kind exchange,” allows a landowner to sell a property, to reinvest the proceeds in a new property and to defer all capital gain taxes. It is addressed in detail in Internal Revenue Code Section 1031 (a)(1) states:
“No gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment, if such real property is exchanged solely for real property of like-kind which is to be held either for productive use in a trade or business or for investment.”
How can Steigerwaldt Land Services help?
The real estate experts at Steigerwaldt Land Services can help locate properties for exchange and connect you with the experts in the tax field to be sure you meet all of the requirements for the process to be successful.
What are the main ideas to consider?
- Owners selling or looking to sell investment property can avoid capital gains taxes by reinvesting the proceeds in like kind real estate.
- The new property has to be of equal or greater value to achieve 100% tax deferral. A partial deferral is possible.
- The seller has 45-days from the sale to identify the replacement property, up to 3 potential new properties can be identified for possible purchase. The purchase must be completed within 180 days of the sale.
- The seller must involve a qualified intermediary that manages the funds between the sale and the acquisition and ensures the transaction is completed within the IRS guidelines.
Why choose us?
Steigerwaldt Land Sales, LLC specializes in brokering residential, recreational forestland, and timberland real estate investment properties in Wisconsin of all sizes. We are supported by a full staff of foresters, Wisconsin DNR forest tax law experts, appraisers, and mapping specialists helping us provide the most complete information to buyers and sellers. We can tackle all the challenges that come with buying and selling with proven success; over the past five years, Steigerwaldt has brokered forest land for sale in Wisconsin of more than 23,000 acres.
Great Properties to Consider!
These are just a few options Steigerwaldt has for you. We will work with you to identify the best properties for you from the numerous land bases that we have access to.
Who do I contact for more help?
Contact our Senior Real Estate Agent and Broker, Todd Frederickson, for more information. He can be reached via email at [email protected] or by calling 715-612-0508.
