When the proceeds from the sale of real property or personal property are used to purchase other like-kind property, you should consider a Tax-Deferred Exchange. The IRS recognizes the use of an Accommodator or Qualified Intermediary as a safe harbor for your transaction. The sale and purchase of property held for use in a trade or business or for investment purposes can be done as a delayed exchange, reverse exchange or a simultaneous exchange. All three qualify for tax-deferred treatment.
There are important guidelines and tricky pitfalls you need to be aware of if you want total tax-deferment. Pioneer 1031 Company can help you set up a 1031 Tax-Deferred Exchange as well as explain the steps for your particular exchange. Although we cannot give specific tax advice, we do give consultations free of charge. Please give us a call with your questions.