A California-based investor reached out to Justin Rayburn, to help complete a 1031 Exchange so they could defer capital gains taxes on a commercial building sale.
The Situation
The client sold a commercial property in California and had 45-days to identify replacement properties in Colorado in order to complete a 1031 Exchange, which would prevent the client from having to pay significant capital gains tax on proceeds realized from the increase in property value.
The Challenges
Once properties were identified, they had to be closed within the following 135-days, which meant Rayburn had to move quickly. He recommended the client diversify their financial portfolio by purchasing two investment-grade office properties in Colorado that would qualify for the 1031 Exchange program and provide a continuous stream of retirement income for the client.
The Result
Rayburn identified over 25 qualifying properties within the first 20-days. They toured approximately 10 locations and selected 2 properties that met all of the 1031 and investment requirements within the required 45-day timeframe. The client closed two weeks in advance of the 135-day (180-days total) requirement imposed by the rules of the 1031 Exchange.
The Stat
Rayburn served as the buyer's representative during the successful 1031 Exchange of investment properties in Colorado. If you're looking for an experienced commercial real estate investment broker to help you navigate a 1031 Exchange transaction and defer 100 percent of your capital gains taxes, contact Fountainhead Commercial today.
