Tulsa Commercial Real Estate Experts: Tax Deferrals Under the 1031?

Tulsa Commercial Real Estate Experts: Tax Deferrals Under the 1031?
by U.S. SBA Entrepreneur of the Year & Cofounder of Fears & Clark Tulsa Commercial Real Estate Group - Clay Clark

In the often complicated world of commercial real estate, the most popular and most used tax-deferral "move" is the Forward Delayed Exchange. In a normal Delayed Exchange, the human who is paying the taxes must buy a replacement property of equal or greater value within 180 days of the selling of their commercial real estate or business. Because the transaction following the initial real estate or business sale must happen within 180 days, it is important that the commercial real estate investor is aware of the market activity in his area and the properties that are available. Because he who has the most choices wins, and he who needs to move the least wins nearly every negotiation it is very important that the investor does not let anyone know that he is hustling up against the time pressure of making a purchase with 180 days.

If sellers catch on to the fact the he has 180 days to make a major purchase, they will be very firm about their asking prices for the properties they are attempting to sell.

Before you actually consider beginning the exhange process on a real estate deal it is very important that you consult with a tax professional or licenses financial advisor to insure that a 1031 exchange is the correct "move" for you and your team. If you defer your tax liability now, you are then deciding that you would rather pay the tax rate of the future when you ultimately cash out.
To give you an example. If you were to sell a piece of Tulsa commercial real estate today for $1,000,000 and your current tax liability would be be $150,000 (based on the 15% capital gains taxes). If you decided to defer those taxes and to use that capital to roll into the purchase of another piece of commercial real estate you could do that. However, if President Obama raises the capital gains taxes up to 50%, then will owe much more in the future that you would currently owe now. If President Obama decides to lower the capital gains taxes, then you would owe much less than you owe now. Just think about it, and make the right decisions for you and your team.

For more information about the 1031 exchange program, purchasing Tulsa commercial real estate, Tulsa commercial real estate, Tulsa commercial office buildings, Tulsa office buildings, Tulsa real estate, Tulsa office space, Tulsa commercial space available and Tulsa commercial investment properties please feel free to contact our expert team of commercial real estate professionals today at 918-481-2080. Or you can visit us online at www.FearsClark.com.

by U.S. SBA Entrepreneur of the Year & Cofounder of Fears & Clark Tulsa Commercial Real Estate Group - Clay Clark