1031 Tax Deferred Exchanges

Section 1031 of the Internal Revenue Code allows real estate investors to defer the payment of tax upon the sale and reinvestment of proceeds from certain property holdings. The Real Estate Attorneys at Lyons Gaddis are experienced in both simple and complex tax deferred exchanges.   We assist and advise clients with exchanges involving residential property, commercial buildings, vacant land, farm and ranch properties, and oil, gas and mineral rights. 

The Mechanics of a 1031 “Like Kind” Exchange

A straightforward 1031 exchange involves the sale of an investment property followed by the investment of sales proceeds in a similar property.  In these situations, you may defer gains on the property sold until a future date – deferring the payment of tax on those gains.  Even a straightforward exchange must follow a strict set of transactional and time guidelines in order to qualify for the deferral of tax. 

In certain situations, a property owner may benefit from structuring a reverse 1031 exchange, involving the purchase of property before you sell the relinquished real estate.  Other clients may benefit from an improvements exchange, allowing you to construct improvements on a property using the sale proceeds from another piece of real estate.  These are more complicated structures that require careful strategy and meticulous execution.

Contact Lyons Gaddis Today.

There are many requirements that a property owner must follow under section 1031 and there are a variety of ways to structure a viable 1031 tax-deferred exchange.  The Real Estate Attorneys at Lyons Gaddis have extensive experience in all aspects of tax-deferred exchanges and can guide you through this often complicated process.  Contact one of our Real Estate Attorneys today by calling 303-776-9900 or by emailing us directly.