Real Estate and 1031 Exchanges
Purchasing and selling real estate is a wealth building tool used by many individuals and families. To maximize it, James River Advisors can perform a 1031 exchange. The 1031 exchange is a real estate transaction that can help you defer taxes, preserve equity and minimize the burden of property management.
Normally, real estate investing comes with the headache of managing individual properties and dealing with tenants. Our strategies, including 1031 exchanges, can free you of this burden. At the same time, our strategies can help you diversify into professionally managed holdings leased to tenants with investment grade credit ratings.
Defer Taxes through a 1031 Exchange
A 1031 Exchange (a ‘tax-deferred like-kind exchange’) is a powerful tax deferral strategy.
With a 1031 exchange, you may be able to:
- Relieve yourself of the time commitment and frustrations of owning and managing your own real estate holdings
- Avoid capital gains taxes that would normally be incurred by selling the real estate you own currently
- Diversify real estate holdings to include different geographical locations
- Reduce the risks and turnover that goes along with leasing to small businesses and individuals
- Upgrade to tenants with investment-grade credit ratings, as well as a national or global presence
- Diversify from a single sector of real estate into a variety of sectors, without requiring additional funds (office, industrial, multi-family residential, etc)
- Enjoy the income and stability real estate can provide without any of the work that is normally required to own and operate real estate
Upon request, we can provide skilled analysis of properties to help you complete these exchanges. Please note that the 1031 exchange service is not part of our all-inclusive fee. If the 1031 exchange is not right for you, we can assist you with other strategies that may be beneficial. Contact us for more information.