Here at Green Mountain Realty in Asheville NC we enjoy educating our commercial real estate clients and investors. Asheville NC commercial real estate investments are available for investors of all types and many of our real state investors will want to utilize our experience relative to Asheville NC commercial real estate 1031 exchanges. Savvy commercial real estate investors will want to take advantage of a 1031 tax-deferred exchange that often involves the sale and purchase of real estate done on different dates. Tax-deferred 1031 exchanges are great for Asheville NC commercial real estate investors as you extend the tax implication on capital gains until a future date when the final property is sold and then not reinvested.
Asheville NC Commercial Real Estate 1031 Exchanges
Let’s talk some about the major details of 1031 exchanges. The property being purchased must have a purchase price which is greater that the sales price of the property being sold. In order to defer the capital gain tax, you must not only buy a “like kind” replacement property, but you cannot receive cash or benefits from the sale without paying capital gains tax. To put it simply, the cash derived from the sale of the old property must be invested in a new property that is at least as expensive or more expensive. If the 1031 exchange is a typical exchange you will need a “qualified intermediary” involved in the transaction before the sale is executed on the old property. The “qualified intermediary” is a facilitator in the whole 1031 exchange process, and essential will obtain your old property to transfer to the new buyer, and then obtain the new property for you from the seller.
1031 exchanges must take place within specific periods of time. You have 45 days to identify a list of potential properties to buy after you relinquish the old property. After the 45 days, the list of identified properties cannot change and you then must make the exchange, that is, you must purchase the new property within 180 days of selling your old property. As you can see it will be very important to work with a qualified commercial real estate firm that can assist you with finding a “like kind” property that meets your investment goals, perform the due diligence, and then work with the “qualified intermediary” to make sure the whole 1031 exchange occurs within the allotted 180 days, start to finish. Green Mountain Realty has extensive experience in Asheville commercial real estate, commercial properties, commercial contracting and Asheville NC commercial real estate 1031 exchanges. Call Green Mountain Realty today at 828.215.9064 for all of your Asheville NC commercial real estate needs.