1031 Exchanges
Many commercial property owners and multi-family investors have created significant wealth and value as a result of perceiving opportunities and being willing to take measured risks to create such value which has resulted in substantial capital gains over the years.
As a wealth preservation and tax deferral strategy, IRC Section 1031 Provisions allow a taxpayer/investor to participate in a process that will defer their substantial, often multi-million dollar, capital gain liability by full compliance with a Section 1031 Like-Kind Exchange which requires strict compliance with a timely decision-making process.
The BRC Advisors, Net Lease Group provides advisory and transaction services to client accountants or directly with clients which:
- Identifies client investment objectives;
- Understands the Equity/Debt compliance ratios with IRC 1031 Exchange Provisions;
- Understands the implications of the client's "carry in basis" for depreciation for future their tax profile with their accounting professional;
- Review immediate tax deferral goals and long term holding strategy;
- Review risk tolerance and credit issues to ensure stable, predictable income streams;
- Craft a client-specific range of asset solutions in coordination with client accounting and legal professionals;
- Provide global list of NNN offerings from our database to identify universe in which Client will be asked to make important investment decisions;
- Develop "Short List" of trade replacement candidates; negotiate acceptable terms, both economic and timing;
- Execute Letters of Intent and coordinate Purchase & Sale Agreement with client counsel;
- Execute Client Strategy, often prior to the Closing of Escrow on their sale property, in advance of the 45 day deadline which allows for a conscious, deliberative decision-making process rather than a rush to judgment merely to defer taxes in the short term. We have found that, "No surprise is a nice surprise", in tax-related matters.
The Result: A successful deferral of capital gain liability and new asset acquisition to preserve wealth and re-position Client for effective future transactions. This can be executed without undue anxiety and stress for a client when it is organized by Net Lease professionals in conjunction with a client's accounting and legal team.