Call us for consultation
212.457.9797
CALL TODAYEMAIL US

1031-EXCHANGES | NYC

Dilendorf & Khurdayan assists local and international real estate clients with structuring complex tax deferred exchanges under IRC Code Section 1031 (“1031 Exchange”) for all types of investment real estate in NYC and nationwide, including condominium and cooperative units/apartments, mixed-use and office buildings, and industrial properties.

ATTORNEYS' EXPERIENCE

Represented a local investor in the sale and 1031-Exchange of $2.55M investment condo in New York City

Advised a foreign client on structuring a reverse 1031-Exchange for the sale of $5M mixed-use property in Midtown Manhattan

Advised real estate partners on structuring a complex 1031-Exchange involving dissolution of partnership and distribution of the tenant-in-common interests in property to the individual partners

Represented out-of-state client in a 1031-Exchange involving sale of investment property in NYC and use of the sale proceeds for purchasing a replacement property in Virginia

Advised a foreign client on the mechanics of obtaining FIRPTA withholding certificate during a 1031-Exchange

With a properly structured 1031-Exchange, taxpayers can defer payment of the capital gain tax after the sale if they reinvest the sales proceeds in the other “like-kind” property.

Transactions involving tax-deferred exchanges are subject to close scrutiny by the IRS and involve complex Treasury Regulations, Revenue Rulings and Internal Revenue Codes.

We draft and review 1031-Exchange agreements and ancillary documents to make sure that the transaction is properly structured, timely executed and complies with all applicable tax rules.

To determine the most optimal structure for the client’s 1031-Exchange, we carefully analyze the property’s ownership structure, the client’s income tax bracket, the market value and cost basis of the client’s property, the value of property improvements, reported losses, carryovers and deductions.

Common 1031-Exchange structures include:

Simultaneous Exchange

Delayed Exchange

Reverse Exchange

Construction / Improvement (Built-to-Suit) Exchange

“Drop and Swap” and “Swap and Drop” Exchanges

Use of Delaware Statutory Trusts for Replacement Property

Dissolutions and Liquidations of Partnerships Followed by Exchange

Representing the buyers, we negotiate contract of sale with the seller’s attorney and ensure that the seller agrees to cooperate with our client and the qualified intermediary to complete the underlying 1031-Exchange.

Representing the sellers, we draft contract of sale and negotiate it with the buyer’s attorney. We ensure that the buyer agrees to cooperate at no additional cost to the seller to complete the 1031-Exchange, including assignment of the seller’s contractual rights and obligations to a qualified intermediary.

Our New York City real estate law firm can also assist clients with selecting a qualified intermediary to hold 1031-Exchange proceeds and make sure that such intermediary has necessary technical experience to complete the transaction and maintains a bond to cover possible losses.

Resources for 1031-Exchanges in NYC:

Like-Kind Exchanges Under IRC Code Section 1031

Like-Kind Exchanges – Real Estate Tax Tips

IRS Qualified Intermediary Information for Like-Kind Exchanges

Perils of a Tax-Deferred Transaction when the Qualified Intermediary Goes Bankrupt

Exchange of Multiple Properties under Section 1031

Exchanging Condominium Units for Cooperative Apartment in New York City under 1031 Like-Kind Exchange

Intersection of Delaware Statutory Trusts and Tenancies in Common

Section 1031 Exchanges: Pitfalls

Impose Capital Gains Tax on Like-Kind Exchanges

The Like-Kind Exchange of Partnership Interests Under IRC Section 1031

Like Kind Real Estate – IRS

Like-Kind Exchange Outline

For a free consultation about your 1031-Exchange or any other real estate transaction in New York

send Dilendorf & Khurdayan an email or call us 212.457.9797.

REQUEST CONSULTATION