Assistance with 1031 Exchanges is a service offered by Metonic, and could benefit anyone looking for a unique opportunity within real estate investing. Metonic’s COO and Legal Counsel, Adam Kirshenbaum, has extensive experience in working with clients to acquire real estate, structure real estate joint venture transactions and structure and complete 1031 exchange transactions. From the desk of Adam himself, learn more about what these exchanges are and how Metonic can help!
What is a 1031 Exchange?
Section 1031 of the Internal Revenue Code allows investors to sell real property, reinvest the proceeds in a new property and defer all capital gain taxes in connection with the original sale. In order to complete a 1031 transaction, all sale proceeds must be held by a qualified intermediary and the replacement property must be identified within 45 days of the sale and purchased within 180 days of the sale. The sale property and the replacement property can be anywhere in the U.S.
How can Metonic help?
Metonic can assist investors with potential 1031 exchanges by:
1. Assisting with the identification of replacement property.
Replacement properties may consist of new assets to be identified and acquired by Metonic, existing Metonic assets that can be sold to exchanging investor or investments in existing Metonic assets.
In completing acquisitions of replacement properties, Metonic can acquire new properties solely on behalf of exchanging investors, invest alongside exchanging investors or pair up exchanging investors with a limited number of other investors in order to provide a broader range of potential replacement properties.
2. Identifying and working with qualified intermediaries to complete 1031 transactions.
3. Ensuring compliance with all 1031 timing requirements.
4. Completing acquisitions of replacement properties.
Upon completion of 1031 transactions, Metonic will provide oversight of the operations and management of the replacement property, including providing non-recourse guaranties where possible.
To learn more about 1031 Exchanges and what Metonic can do for you, contact us!