A group of business leaders gathered in West Orange last week to celebrate their peers, as Blue Water Wave held its first-ever awards ceremony for excellence in real estate and other sectors.
Sax LLP
Sax’s Real Estate Practice works hand-in-hand with owners, developers, operators, property managers, landlords, investors, family-owned companies and privately-held funds to reach their business objectives. Those we serve are industry professionals that are not just looking for an average accountant, but rather a partner in their business lifecycle, strategic decisions and long-term goals.
What you need to know today: the like-kind exchange strategy
A 1031 exchange (like-kind exchange) is one of the most significant tax advantages available to a real estate investor selling a property with large realized gains. By implementing this tax strategy, it is possible to defer tax payments on the sale of an investment property indefinitely. While like-kind exchanges are common, there are still many complexities to navigate. Given some of the proposed legislative changes put forth by the Biden administration and members of Congress, it may make sense to accelerate transactions into the 2021 tax year.
Like-Kind Exchange: What Real Property Can Do For You
The IRS recently released long awaited guidance on Sec. 1031 (like-kind exchanges) and defines what property qualifies for the deferred tax treatment. With the enactment of Tax Cuts and Jobs Act (TCJA), rules provide that no gain or loss is recognized on the sale or exchange of “real property” held in a trade or business or for investment. Prior to the TCJA, “personal property” (like automobiles, machinery or equipment) applied for the deferral. This change means a real estate investor recognizes gain to the extent of money and personal property ineligible for the tax deferral.
