In a recent article developed in partnership with Bisnow Cincinnati, Steve Wolterman, Esq.—president and owner of 1031 Federal Exchange—discusses how 1031 exchanges can support long-term wealth building while reducing immediate tax liabilities.
More real estate investors are turning to 1031 exchanges as a strategic way to grow their portfolios and defer capital gains taxes. Under Section 1031 of the Internal Revenue Code, investors may defer paying capital gains taxes when they reinvest the proceeds from the sale of one investment property into a like-kind replacement property.
Mr. Wolterman emphasizes that 1031 exchanges are a powerful tool, but success hinges on strict compliance with IRS rules. For example, investors must identify a replacement property within 45 days of the sale and complete the purchase within 180 days. Additionally, the sale proceeds must be held by a qualified intermediary (QI)—a role Mr. Wolterman and his firm, 1031 Federal Exchange, routinely fulfill. He stresses the importance of involving a QI early in the process to ensure compliance and avoid costly errors.
Read the article here:
1031 Federal Exchange provides guidance on a variety of exchange types, including reverse exchanges, simultaneous exchanges, and improvement (construction) exchanges. The firm’s goal is to help investors structure transactions that maximize tax benefits while mitigating risk.
By combining legal insight with QI services, Mr. Wolterman and his team offer personalized, strategic guidance to help clients protect their investments and position themselves for long-term, tax-efficient growth.
If you need guidance or have questions, call 1031 Federal Exchange at 513-488-1135 or contact us online to schedule a free consultation. Based in Loveland, Ohio, we proudly serve clients nationwide.