1031 exchanges play a large role in the net lease market. By allowing investors to transfer from one property into another – like kind – property, they permit the deferment of capital gains taxes. This allows capital to grow and investment to continue unabated. For more information on 1031 exchanges click here.
However, one aspect often overlooked is that 1031 exchanges include a 180 day exchange period unless you started your exchange in the previous year, say 2011, and April 15th cuts short your 180 period. If this is the case you must file for an extension to get the full 180 days.
This exchange period is very important because the process of selecting a replacement property is often long and complicated. Even with the 180 day period, many investors run up to the very end. This year, make sure you get the full time allotted to make the best investment and not get caught with unnecessary capital gains tax.
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Jonathan Hipp
Jonathan Hipp began his career in real estate over 25 years ago. In his early years as a broker, he ventured into the net lease industry and quickly began leading the US net lease market, closing over $3 billion in transactions. In 2005, Jon founded Calkain Companies, a company focused solely on net lease investment services. As President and CEO, he has been instrumental in building the firm into one of the leading Net Lease real estate companies, transacting over $12 billion of net lease deal volume over the past 13 years. He has expanded Calkain’s services to include brokerage, advisory, asset management, capital markets, and industry research. He has become a well-known resource, panelist, and speaker at various Net Lease and Industry conferences and is a regular contributor to GlobeSt.com on real estate trends. In June 2015, Jon’s passion for the real estate business was again recognized as he was nominated for the Top Real Estate Player in the DC area by SmartCEO magazine.
