1031 Exchanges in NJ
A 1031 exchange is a real estate investment vehicle allowing one property to be exchanged for another while deferring payment of capital gains tax. Both NJ and the IRS have specific procedures and reporting requirements that must be followed for successful completion of 1031 exchanges. Danny May, CTP, and his team of professionals work with investors and intermediaries to see that 1031 exchanges are conducted in accordance with ALTA and CFPB best practices and are compliant with applicable state and IRS regulations.
1031 Exchange NJ
Rules 1031 exchanges have specific rules that govern this type of investment property swap. Failure to follow these rules and comply with established timelines can negate the exchange and leave investors open to IRS & NJ taxes and penalties. 1031 exchange rules include the following:
- Properties must be like-kind (one investment property for a different investment property).
- You cannot personally receive any funds from the initial investment property sale. The exchange is usually structured through a third party that receives proceeds from the sale of your property and disburses it upon completion of an exchange property purchase.
- An exchange property must be designated within 45 days of the sale of your property, and you must close on the new property within 180 days.
- NJ has a mandatory withholding tax for non-resident property sellers who execute a 1031 exchange.
Request NJ 1031 Exchange Services
NJ real estate investors who want to take the risk and uncertainty out of complicated transactions like 1031 exchanges turn to Black River Title for real estate closing and settlement services. Title searches, document preparation, escrow accounts, and tax reporting are handled smoothly, on a reliable timeline, and with full transparency for all involved parties. Call the Black River Title team at 908-979-8982 to request a NJ title search or schedule a real estate closing.