NYC 1031 Lawyer Natalia Sishodia Discusses the Purpose of a 1031 Exchange

NYC 1031 lawyer Natalia Sishodia releases a new article (https://sishodia.com/1031-exchange-attorney-new-york/) that explains the purpose of having a 1031 exchange. The lawyer mentions that a 1031 exchange is a type of exchange where one investment property can be exchanged for another in order to defer capital gains. A 1031 exchange, however, can be strict and have complicated rules.

According to the NYC 1031 lawyer, “The term 1031 exchange derives from Section 1031 of the U.S. Internal Revenue Code. This tax code allows an owner of a piece of an investment property the ability to refer to paying capital gains by exchanging their investment property with one of “like-kind.” In a 1031 exchange, the proceeds from an investment property are reinvested into a different investment property in an exchange instead of a sale/purchase.”

The lawyer explains that a 1031 exchange allows a real estate investor the ability to purchase and sell a property without having to pay capital gains taxes. These taxes are deferred until the final sale of the exchanged property.

1031 attorney Natalia Sishodia also mentions that the capital gains tax is high at the moment and can significantly reduce any profit from an investment property sale. These taxes could rise in the future.

Attorney Sishodia discusses the reasons real estate investors might want to use a 1031 exchange. The exchange will allow for the deferment of capital gains taxes until the final sale, which allows more capital to be reinvested elsewhere. In addition, the 1031 exchange postpones the depreciation recapture profit.

A 1031 exchange allows investors to grow their investments while only one capital gains tax is due at the sale of the property. This is usually at a long-term rate. An investor can also use a 1031 exchange as many times as they wish, provided that the requirements are met.

Lastly, the 1031 lawyer emphasizes the importance of having a skilled lawyer when it comes to matters such as a 1031 exchange. An experienced lawyer may be able to help the client understand their rights and responsibilities in the exchange.

About Sishodia PLLC

Sishodia PLLC’s team of professional New York City 1031 lawyers pride themselves on their ability to give the most comprehensive advice and guidance possible to their clients. The lawyers at Sishodia PLLC take time to fully understand each client’s unique goals and circumstances, minimizing potential risks and issues. Call them today at (833) 616-4646 for a consultation.

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