Detroit Real Estate Broker Helps Accommodates 1031 Tax Deferred Exchange By April 2020 Deadline

Success!

I am closing two 1031 tax deferred exchanges for an out of state investor who lives in Denver, Colorado.

Illustrated in this blog post are photos of 2 properties in Detroit, Michigan which are closing in the next 24 and 48 hours.

The great news is the investor in Denver, Colorado doesn’t have to pay taxes on the 2 properties he is relinquishing in Idaho by rolling over his investment for 2 cash flowing properties.

Detroit still proves to be one of the top cities in the United States for real estate investing.

Many investors are still acquiring and closing real estate investment properties during the Covid-19 crises even at the peak of the pandemic. Detroit provides some of the best cash on cash returns in the nation.

If you have properties in the United States which you are currently selling/relinquishing and don’t want to pay taxes on the gain please feel free to contact me. My team and I will discuss a strategy to help you save thousands of dollars in capital gains which ultimately allows you to sell tax free.

What is a 1031 Tax Exchange and Why You Should Consider?

Maximize your investment!

1031 exchanges are a smart wealth-building tool. As a property owner you may lose valuable investment funds when the sale of an investment property requires the payment of capital gains taxes. Qualified intermediaries are set up to accommodate 1031 exchange services which empowers investors to preserve equity and save tax dollars through tax-deferred exchanges. Under Section 1031 of the Internal Revenue Code, you can defer the payment of capital gains taxes when you sell investment property and acquire “like kind” replacement property. 

This is perfectly legal and under the current tax code 4 different types of exchanges are allowed:

1031 Exchange Services

1 Delayed Exchanges

A 1031 tax-deferred exchange allows disposition of investment properties and acquisition of "like-kind" properties while deferring federal capital gains taxes.

2 Improvement / Build-to-Suit Exchanges

Ensures the critical function of Qualified Intermediary is carried out with exceptional service and security when a taxpayer wants to acquire replacement property and build improvements on it during the exchange period.

3 Personal Property Exchanges

Provides the opportunity to defer capital gains taxes and depreciation recapture.

4 Reverse Exchanges

Assists with the entire transaction when a taxpayer wants to acquire replacement property before closing on a relinquished property. Includes setting up a separate entity as the EAT and acting as the Qualified Intermediary.

 If you or someone you know has recently sold a property in the United States or U.S. territory and would like to identify purchasing properties in Detroit feel free to schedule an appointment with my team to discuss your tax free exchange strategy.

David H. Brooks, III ~ DETROIT REAL ESTATE ADVISORS, LLC Broker/Owner Property Manager 248.499.0620

www.DetroitRealEstateAdvisors.com

[email protected]

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David has been a licensed real estate broker in Michigan for 30+ years since 1987 and over 5000+ properties sold in Michigan. Formerly recognized by Hour Magazine as one of the top 5% of real estate agents for closed volume in Metro Detroit in 2013 & 2014.