IRC Section 1031 Tax-Deferred Exchanges

For real estate investors, buying and selling property occurs regularly as part of their business. Internal Revenue Code (IRC) Section 1031 allows investors to defer capital gains taxes. Investors can then reinvest all of the equity of the original property into a new acquisition without paying capital gains taxes.

At Legate Law Corporation, our real estate attorneys assist investors with Section 1031 tax-deferred exchanges. The process is complex, designed to discourage investors from taking advantage of this part of the tax code. Located in Irvine, our attorneys are experienced and can guide investors through the process, allowing them to avail themselves of the tax advantages.

To schedule a 30-minute initial appointment with one of our Orange County IRC Section 1031 tax-deferred exchange lawyers, contact us online or by phone at 949-724-1770.

Helping Real Estate Investors Defer Capital Gains Taxes

Every investor's real estate transaction is distinct and is affected differently by Section 1031. Our attorneys gather all the facts surrounding a Section 1031 exchange and offer pragmatic advice regarding the best path toward deferring capital gains taxes for that transaction.

Section 1031 exchanges are not available for all transactions. Requirements for an exchange to be valid for tax deferment purposes include:

  • Property qualification — The real estate being exchanged must not be one that is specifically excluded by Section 1031.
  • Proper purpose — The property must be used as an investment, not merely as property for immediate resale.
  • Like-kind — Property being exchanged for acquired property must be "like-kind."