Many investment property owners are familiar with the 1031 exchange, a provision in the tax code that allows taxpayers to defer capital gains tax when selling an investment property and replacing it with a like-kind property.
But did you know there is another part of the tax code that offers the same tax-deferral benefits if you have lost property due to involuntary conversion? That includes:
- Property taken by eminent domain
- Property sold under threat of eminent domain
- Property destroyed by a natural disaster like a fire, flood, or hurricane
Losing a property can be emotionally devastating. Fortunately, it does not have to be financially devastating. Our team of investment professionals at Fortitude have been helping clients for years, who have experienced an involuntary conversion, successfully complete their exchanges.
The rules and the qualification requirements of a 1033 exchange, however, can be complex and difficult to navigate on your own. That’s why we created our newest eBook, 1033 Exchanges - A Tax-Advantaged Strategy for Investors Who Have Lost Property.
This guide provides additional insights on the exchange process and the different requirements that apply to how your property was lost. We are confident you will find this information invaluable as you consider this property replacement strategy. You can also read more about 1033 Exchanges on our website here.
Please don’t hesitate to contact us for a free consultation if you’d like to get our perspective on your specific property loss. You can also schedule a time that works for you here.