1031 Exchange Services
Every real estate investor has their own strategy. And, for some, taking advantage of the 1031 exchange - the IRS Section 1031 of the IRS tax code - is viewed as the greatest chance to build wealth and save on taxes.
If you are an investor taking advantage of the 1031 exchange, then you need an experienced title company like Bulldog Title Insurance Agency, LLC by your side.
1031 Exchange: An Overview
When you sell a property that was purchased for investment or business use, you are typically required to pay taxes on any gain from the sale. However, thanks to Section 1031 of the Internal Revenue Code, you can defer any capital gains taxes you owe. The catch? You have to replace it with another “like-kind” property. All of your equity will be reinvested into this replacement property.
While this can be a wonderful option for an investment strategy, there is an important timeline that must be followed in order for the taxes to be deferred. Let’s take a look at these key points:
Within 45 calendar days of the sale of the first property, the investor must find a replacement property to acquire.
Within 180 calendar days after the sale of the first property, or the due date for the tax return for the tax year in which the property was sold - whichever comes first - the replacement property must be acquired.
Because of the strict timelines and the fact that there is a lot at stake, it is important to ensure a smooth, organized transaction that can meet deadlines - even when in a crunch. And if you have spent any time in real estate, then you know it is common for issues to arise at the last minute. This is why working with Bulldog Title Insurance is so crucial. After all, one missed deadline could disrupt your entire investment strategy.
Supporting Investors Throughout Louisiana
At Bulldog Title Insurance Agency, we have the expertise and experience to successfully handle 1031 transactions. These often complex and specialized real estate transactions differ slightly - and seasoned investors know that it pays to partner with a team that can steer them toward an easy and effortless experience.
It doesn’t matter where you are in Louisiana’s 64 parishes, we are here to serve your title needs.*
*While Bulldog Title is not a qualified intermediary, we can assist the buyer in finding one and in all other aspects of the transaction.