Real estate investors normally incur unnecessary tax liabilities in the form of capital gains at the time of selling commercial properties that they no longer need. The amount of taxes that these businesspeople have to pay to the government for selling such assets make them think twice before entering into such transactions. However, many of them do not know that tax-free exchanges, which have been in existence since 1920s, can help them to avoid paying such huge taxes. Instead, they hold onto their existing properties for a longer period or buy replacement properties, which they cannot afford to buy.
The Welfont Group is a reputed corporate enterprise in America that assists their real estate clients take advantage of various tax-exempt strategies like 1031 Exchange. This scheme allow real estate sellers to get a better deal when they enter into transactions to dispose of their commercial real estate assets. If such investors can execute this strategy properly, they can lawfully sell their commercial properties through a 1031 exchange, get instant cash and pay little or no capital gains tax. However, this depends upon the nature of the transactions such an investor enters into for the transfer or exchange of his/her property.
Important things investors should be aware of
The professionals of this company explain that it is important for all property owners to be aware of certain aspects before entering into 1031 Exchange transactions. This provision meant exclusively for individuals and businesses who want to sell or invest in commercial properties. This means that it is not possible for a residential owner to sell his/her house property and buy another one as a replacement. This is reason why it is always important for companies and businessperson to consult professionals who have expertise in such matters before entering into such agreements. The provision of 1031 Exchange allows investor to transfer or exchange ‘like-kind’ properties. For instant, a tenant who has business interests in the real estate assets can qualify but will not be eligible to sell his/her property for stocks in a company. Similarly, it is possible for investor to trade their apartment buildings for land or a ranch for a shopping mall.
At times, it is not possible for real estate sellers to find the right buyer to conduct business transactions under this scheme. In such a case, they businesspeople need the services of professionals who take care of proceeds from the sale of their real estate asset and invest it a suitable replacement property.
The professionals who makes deals easier for their clients
The real estate experts from Welfont Group will go out of their way to help their clients out when they conduct business dealings under provisions of 1031 Exchange. They will explain the various technical and legal aspects of tax-saving strategy so that the clients have a good understanding of how it works. Moreover, their friendly attitude and commitment to serve the best interests of their clients in all their business dealings makes them an instant hit with real estate investors in America.