The term “1031 Exchange” refers to Section 1031 of the IRS tax code which permits an investor to defer capital gains taxes when selling a property and purchasing another property in its place, provided certain legal and time requirements are met. An “intermediary” is required to manage the proceeds from the sale and the transfer of the sale proceeds to the attorney closing the “replacement” property. In order for a 1031 exchange to be valid in accordance with IRS regulations, the seller cannot have access to the funds generated from the sale of his or her property.
The letter of the law is far more complex, and when you’re dealing with the IRS it is always better to err on the side of caution. That is why you need to call on the South Carolina land professionals at Henderson & Associates to help you deal with all the details and fine print of your 1031 exchange. Not only can they help facilitate the sale of your existing timber or forestry property, but they can also help you procure your next property. They have many years of experience in the sale, brokerage, and management of timber land and services and can help you meet all the requirements of a 1031 exchange without any worry of trouble with Uncle Sam.
Henderson & Associates, Inc. has worked with many clients and attorneys in conducting 1031 exchanges and can provide the guidance required to navigate the exchange of like-kind property. Sheltering the gain from the sale of timberland can save the seller’s capital which can be used to purchase a larger tract of land.