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If you answered YES to any of these questions, you've come to the right place.

If you would like to trade up, or simply change some of your Real Estate holdings without being killed on your taxes, then a "1031 Exchange" should be part of your strategy.

If you have held a property for investment purposes but are ready to make a change, then you need to plan ahead to protect your profits from the tax man.  In addition to your Capital Gains, the IRS will also be coming after the depreciation deduction you have taken on your prior tax returns. 

You didn't think there were going to forget about all that money you have been deducting, did you?   Sorry, they aren't.  But if you know how the IRS works, you shouldn't be surprised that they also provided a loophole big enough for Investors to drive a truck through.  The process is a little complicated, but in a nutshell, the IRS will let you defer the taxes due from Capital Gains and recaptured depreciation indefinitely, and maybe eliminate them forever.  Yes, you heard me right.  Deferred the taxes for now, and possibly eliminate them forever.

This loophole is called a 1031 Exchange, and the name comes from Section 1031 of the Internal Revenue Code.  This section of the code is where you can find the guidelines regulating the dos, don'ts, and the timelines for pulling this off.  They don't make it easy, but it is not that hard either.  
There are very specific timelines that need to be followed and certain rules about property values that need to met, but overall the process is pretty straightforward as long as you have a knowledgeable professional helping you with it.

Let's work together to create a plan of action that accomplishes your goals.

 
 

HOW WE CAN HELP

I want to be clear that we don't provide 1031 Exchange services in Huntsville by filling the role of a Qualified Intermediary.  

What we DO help with is providing you with information on the 1031 Exchange process, help you find a provider in Huntsville, Alabama, and helping you buy and/or sell your Exchange properties through our Real Estate Team at 256 Realty.  We work with investors with any level of investment experience.  

With experience owning our own rental property in the 256, we can easily help you sort through the properties available in Huntsville and North Alabama to help you find the best rentals.  We can also help you find the right property that is NOT currently on the market, which we do quite often.  

Over the past few years, we have helped our clients buy and sell millions of dollars worth of properties, and the percentage of those sales that are part of a 1031 Exchange has been increasing steadily.  Paying more taxes than you need to will dramatically slow down the growth of your portfolio, and impact the wealth of your family for generations.  Smart investors use the 1031 Exchange to keep more of their money, and you should be doing the same.

Call or email me today, and let's get started.

Click the play button in the media player below to listen to a 16 minute interview with Real Estate Attorney Russ Munger explaining how the 1031 exchange works.

Russ Munger has worked in Madison County for more than 30 years. He now specializes in Real Estate Law and Estate Planning. His team of real estate professionals have been trained by him to be professional and efficient at helping clients with their needs.

You can find his firm at mungerandmiddleton.com