Taxation & Wealth Planning

Section 1031 Exchanges

Fox Rothschild attorneys facilitate complex like-kind exchanges under Section 1031 of the Internal Revenue Code to help investors defer capital gains taxes in investment property sale transactions. Such exchanges allow investors to capture the value of an appreciating investment and trade in to another investment property while deferring the tax liability that would otherwise be incurred on the sale of such property. While a like-kind exchange is relatively straightforward for an individual property owner, we are adept at facilitating complicated like-kind exchanges for multiple-investor property owners in which such investors have divergent interests or tax positions. These sophisticated deals, involving multiple cash-out and trade entities, allow some investors to cash-out their original investment and others to reinvest their original investment into new properties. Fox attorneys are experienced practitioners who are well versed in these types of exchanges, which must be structured with care to avoid negative tax consequences.

The multidisciplinary Fox team includes attorneys who focus on corporate, real estate, tax and estate law, covering the full spectrum of legal issues that surround like-kind exchanges. Our attorneys assist investors in structuring or restructuring ownership entities to facilitate like-kind exchanges, and are comfortable walking clients and their CPAs through these types of transactions to ensure accurate reporting to state and federal tax authorities, a key aspect of any transaction.