Safe harbor and non safe harbor 1031 exchanges
How can a 1031 exchange be structured so a new construction project can shelter the profit on a large property to be sold. What options are available?
Answers (4)
Michael F
Senior Asset Manager at Grubb & Ellis Realty Investors
Best Answers in: Commercial Real Estate (1), Tax Law (1), Organizational Development (1), Personal Real Estate (1)
Please call Tracey C. Wilson, Dir. of commercial 1031 exchanges for 1031 Exchange Experts, LLC in Denver at 866-694-0204 www.expert1031.com. I have met him a couple of times and heard him speak in classes. He will be able to answer your questions quite articulately.
These are two individuals you should speak with ASAP
Casey H
Managing Partner at Offshore Expatriate Real Estate Advisors (OEREA) - casey_hartnett@yahoo.com
If Tracey isn't available, speak with Gary Gorman.
You may want to look into Cost Segregation to see if you can lower your basis on your properties. There are a lot of variables that would come into play for example the are recapture costs that may be able to be overcome.
Basically, it is an engineered-based study to move as much as possibly from real estate (Section 1250) property to personal (Section 1245) property. Cost Segregation Studies work in conjunction with the your CPA. Have a quick feasibility study finished and schedule a meeting between you, your CPA, and the company that has the capibilities to do the study. Having yourself and your CPA present, allows for not only what your current situation is but what your future plan might entail. This way your CPA can work with you to identify what the costs and benefit will be and whether the Study is worth it.
Here is a link from the Journal of Accountancy that does a pretty good explaining the situation.
