Section 1031 Lunch N Learn

People pay Federal and State taxes when they have gain/profit on the sale of investment property. However, in an even trade (or if the investor trades their investment property in for more-expensive property) there is no income/profits which could be used to pay taxes.

Under some circumstances, investors can use a “Section 1031 exchange” to defer taxes on gains they earn from investment property; however, the IRS restricts these types of exchanges to “like-kind” property, and also establishes conditions (required actions, property value thresholds, time deadlines, etc.) which must be met in order to qualify for tax deferral.

Key topics we’ll discuss include:

1. Why an investor would use a Section 1031 exchange
2. Mechanics of several types of Section 1031 exchanges
3. Ways to avoid common pitfalls during the 1031 process to maximize an investor’s chances to defer taxes on a purchase/sale of investment property.

• Karl Sigwarth is an attorney in Bradley and Riley, PC’s Iowa City office with a practice focused on transactional (real estate and corporate) law.  A graduate of Harvard Law School, Karl has a great deal of experience with real estate transactions and is looking forward to talking with the group. A link to Karl’s attorney profile is enclosed here: Karl’s Profile 

RSVP to karyl@hbaofic.org, or call (319) 351-5333 by Friday, Feb. 25.