Our client Rob was the owner of a few properties around the Puget Sound. When the time came that he was ready to move on from managing properties, Rob was looking to sell his five-unit apartment complex.

“I’m done managing property and I’m done with active investing so we were looking for a passive investment. Dick found us something that fit our needs.”

But if he sold his property without thinking ahead, the money he’d make on the sale is all subject to capital gains tax. Therefore, Rob was looking to perform a 1031 Exchange by reinvesting the proceeds of the sale into a different, like-kind property.

Rob trusted Dick with the scouting and selection of a new, like-kind property that would qualify for the 1031-exchange and offload the property management responsibilities Rob was looking to move on from.

Rob’s investment will continue to appreciate, and he nor his family will have to pay the capital gains tax.

Don’t sell investment property without exploring a 1031 exchange first; once the sale happens the opportunity passes. 

Harsin Advanced Tax Planning makes your 1031 exchange easy: we’ll recommend eligible investment properties and handle the administrative work.