1031 Exchange in Seattle
What is a 1031 exchange?
A 1031 exchange is a process in which a seller can sell, or “exchange”, an investment in real property in order to purchase another investment property while deferring the capital gains tax on the profit from the property sold.
Benefit of a 1031 Exchange?
Doing a 1031 defers the gains tax, allowing a seller’s asset to continue to mature until he or she is ready to liquidate at another point in time. In doing so, the seller only incurs a capital gains tax on their investment one time.
How does it work?
Most sellers engage in a delayed exchange, in which their investment property is sold and a third party, an exchange facilitator, receives and holds the proceeds from the sale until the seller identifies his or her new investment, which must be done within 45 days of closing. The purchase of the new property must be completed within 180 days of the sale of the original investment property.
Check out this podcast on KIRO Radio’s Real Estate Today for more information about the 1031 exchange:
How can Wilcynski Partners help?
We’ve worked with sellers and buyers alike who were looking to engage in a 1031 exchange in Seattle and can help you navigate both the listing process as well as help you identify and purchase your next property. We’ll work closely with you and your exchange facilitator to help ensure that this complex, and narrowly timed transaction process is seamless and all parties involved are moving in concert with one another to protect your investment.