1031 Tax Deferred (External Link)

Welcome to Capital Intermediary, LLC, specializing in 1031 Tax Deferred Exchanges.

When you sell a property, you are going to receive a gain or take a loss on the sale. In most circumstances, you are obligated to report these gains and losses to the federal government. If you are fortunate enough to have made a profit on that sale, it is subject to capital gains tax.

However, section 1031 of the Internal Revenue Code (IRC) provides an exception to that general rule. At Capital Intermediary LLC, our focus is to help investors complete 1031 Tax-Deferred exchanges, thereby delaying the Capital Gains liability that would be due on a sale.

Here is how it works: In most cases, you sell a property, pay the capital gains tax on any profit, then reinvest the final proceeds of the sale into another property. IRC 1031 allows you to defer that middle step. 1031 allows you to defer capital gains tax as long as the proceeds from the sale go into the purchase a similar, or “like-kind,” property. Instead of sending a percentage of your profits to the government, you are able to put it directly toward a new investment.

Disclaimer: No 1031 Exchange should be undertaken without the advice of an accountant or other financial expert. Capital Intermediary acts only as an exchange agent and is prohibited from giving legal or tax advice.

For more information, please call us at (518) 434-3165 or e-mail us at info@capitalintermediary.com