The term “like-kind exchange” describes the federal and state capital gains tax deferral strategy requirement of an Internal Revenue Code (IRC) Section 1031 tax deferred exchange that properties exchanged must be like-kind to one another. A 1031 exchange effectively defers the gain triggered by the sale that can represent upwards of 40 percent of the property’s sales price. The like-kind exchange represents an indefinite, interest free loan that is due when the replacement property is sold, unless the basis is stepped up to the taxpayer’s heirs or another like-kind exchange is initiated.
Andy Gustafson
1031 Reverse Aircraft Exchange Cessna 501 for Cessna 525
“What impressed me was that what he said is exactly the way the reverse exchange happened. He was spot on. It is a rarity today to find someone so competent, available, thorough and responsive let alone trustworthy. If he didn’t know the answer, it was not long before he researched the question and got back. I could not be happier with Andy. No complaint here, he was professional, timely and enjoyable to work with. I am sincerely appreciative of how Andy responded and acted on my behalf.”
1031 REO Eligible Land Site in Wicker Park, Chicago, Illinois
This REO 1031 eligible property represents a development site located along the north side of West Division Street proximate to the intersection of Milwaukee Avenue and Division Street in the Wicker Park Neighborhood of Chicago, Cook County, IL. The site encompasses land area of approximately 7,500 square feet (0.172 acres) located on the north side of Division Street, between Ashland Avenue and Paulina Street. The three contiguous parcels are zoned B3-2, Community Shopping District.
1031 REO Eligible Commercial Property in Chicago, Illinois
This bank owned 1031 eligible commercial property located at 211 Dixie Highway is a 51,524 SF, free-standing, single-story, medical office / retail building on 5.75 acres located in Chicago Heights, IL. The building was originally constructed in 1986 and renovated in 2006. The building is 15% leased to one of the largest hospital groups in the Midwest. The medical group is under a triple net lease that is currently in the 1st year of a 5 year term. Base rent is $15.46/SF and the tenant is responsible for its portion of the real estate taxes, insurance and operating expenses. The remaining space is unencumbered by leases and is in near vanilla box condition.
Reverse 1031 Exchange
A reverse 1031 exchange is a tax deferral strategy created in Section 1031 of the Internal Revenue Code providing a mechanism for taxpayers to enter into an exchange of property in lieu of a traditional sale. A Section 1031 exchange is an attractive option for taxpayers because when a transaction qualifies for Section 1031 treatment any capital gains taxes that would otherwise be due are deferred. Over the last century, the Section 1031 rules and regulations have evolved to meet the increasingly complex demands of taxpayer transactions. A number of safe harbor provisions have been built in to Section 1031 exchanges in order to facilitate the transactions. For example, Revenue Procedure 2000-37 provides a safe harbor provision for parking a title during a reverse 1031 exchange.
REO Freezer/Cold-Storage Facility in Cranston, RI – 1031 Eligible
This banked owned 1031 eligible commercial property is a 234,000 SF cold-storage facility situated on 76.17 acres just 2 miles off of I-295 in Cranston, RI. The facility was built in 1987 and 1989 and is in good condition. There is also a large storage facility and repair garage in the back of the property that can be used to store vehicles or other property maintenance materials.