Exchanges

Equity Trading - Woodfin

Exchanges involve the trading of equity in one piece of property to the equity in another piece of property and can be appropriate for a variety of circumstances. Because of the potential benefits, an investor should consider an exchange if it fits the situation. Some reasons to exchange include:

  • to avoid or reduce recognition of a capital gain upon sale;
  • to acquire a larger property than you would be able to control if you only had the proceeds after a sale, tax payment and reinvestment;
  • to acquire a replacement property with a smaller mortgage & potentially higher cash flow;
  • in event of a geographical move;
  • to acquire an asset which would be better suited to borrow against;
  • to increase basis or reallocate;
  • to satisfy a need to diversify by acquiring a number of smaller properties to replace one larger single property;
  • to consolidate to increase management efficiency or economies of scale.

Commercial Consultants Realty LLC can help investors find properties that have excellent 1031 exchange potential. Having a familiarity with IRS regulations and rulings on exchanges enables us to help investors make exchanges that may defer taxes on
gains and use equity positions more effectively. We will also work closely with a client’s attorney and accountant to minimizethe effect of taxes from the exchange while maximizing return on the client’s equity. We look forward to helping you with your investment goals.

Contact us to learn more