Investment Acquisitions & Sales
For many individual and institutional investors, commercial real estate remains a core strategy to creating wealth. Harris Commercial Realty understands a well-defined investment objective and a clearly defined implementation plan. Our role is as a trusted adviser to our clients – what is the right fit for the targeted return and what asset will truly help to build a more flexible and resilient portfolio.
You can defer paying capital gains tax when selling an investment property while utilizing a 1031 IRS Approved Tax Deferred Exchange providing you invest into another investment property.
1031 Tax Deferred Exchange-Exchange Designation Rules
The Exchanger has 45 days to designate the property to be acquired and 180 days to close on the designated property (ies). Both time periods being the date the Exchanger relinquishes the property begin exchanged. You may change your designation as often as you desire, or revoke all designations up to the 45th day after the date you relinquish your exchange property.First, any replacement property received (acquired) during the 45-day designation period is treated as property identified and designated.The Internal Revenue Code (IRC) states that an Exchanger has 45 days after relinquishing (closing on) the property being sold to identify and designate in writing to the Qualified Intermediary the property or properties the Exchangor desires to acquire. There are no extension provisions.
3-Property Rule Most Exchanger’s designate one (1) to no-more-than three (3) properties, and there is no restriction as to how aggressive the Exchanger may be with financing. The Exchanger may close on one, two, or three of the three (3) designated properties.OR The 200% RuleThe Exchanger may designate more than three (3) properties, but the total value of the “more than three (3) properties” cannot exceed 200% of the value of the relinquished property.OR
The 95% Rule -If more than three (3) properties are designated, the Exchanger may disregard the 200% rule if 95% of the total value of the properties designated is acquired.