1031 Exchange Consulting in West Los Angeles
Michael Millea offers unparalleled expertise in real estate services, from buying and selling probate real estate to expert 1031 exchange consulting. As one of only five people in the country with his unique skillet as both a real estate broker and real estate attorney, Mike is able to navigate through complex dealings with ease and broker profitable transactions for his clients.
1031 exchanges are beneficial because they allow an investor to sell a business or an investment property and then reinvest the proceeds into a new property and then defer all capital gains taxes. To put it more simply, it’s where you swap one business or investment asset for a new one. While our team is here to help guide you through the 1031 exchange process, there are some general do’s and don’ts that you should know about before dealings begin.
1031 Exchange Dos
If you’re going through a 1031 exchange, there are a couple of best practices to keep in mind:
- Do your advance planning necessary for a 1031 exchange. Spend time talking to your accountant, attorney, lender, etc.
- Do keep in mind that any cash or credit that’s left over after the intermediary acquires the property will be taxed.
- Do try to sell before you purchase. While it’s not uncommon for exchangers to find the replacement property they want before finding a buyer for their property, this leaves exchangers with fewer options.
1031 Exchange Don’ts
On the other hand, here are a few things that you’ll want to avoid:
- Don’t over-finance the replacement property. The IRS won’t consider any funds that are remaining due to excess financing to be considered as loan funds.
- Don’t miss your deadlines on identifying properties; after all, you’re not allowed any extensions. You’ll only have 45 days from the time that you sell your property to identify any potential properties to purchase.
- Don’t miss the deadline for purchasing the property either. You’ll have 180 days to purchase one of the properties that you just identified.
Contact Your Torrance, South Bay, and West LA 1031 Exchange Consultant!
If you’re in or around Torrance, the South Bay or the greater West Los Angeles area and you’re looking for help with 1031 exchanges, we encourage you to give us a call at (310) 939-9356. Please feel free to contact us if you have any further questions or concerns. Mike and his team are here to help clients navigate these complex dealings, and committed to creating profitable transaction. We look forward to hearing from you soon!