Our firm can establish a real estate investment structure allowing the use of funds held in retirement accounts (such as an IRA) for the purchase and ownership of investment real estate, providing access to these funds and having the income and capital appreciation or gains accumulate inside of the IRA, tax-free. These retirement funds can also be used as a source for private lending, achieving returns well in excess of current market rates.
Our focus on real estate matters includes services structuring and conducting Section 1031 tax-deferred exchanges of investment real property under the U.S. Internal Revenue Code. Our office can act as the “Qualified Intermediary,” holding the seller’s net sales proceeds in escrow until the closing on the seller’s acquisition of “Replacement Property.” At that closing, the escrowed funds are disbursed as payment for the Replacement Property and if properly done, could result in no taxable gain being recognized on the previous sale. This is often an ideal method of reinvesting property sales proceeds for the purpose of acquiring additional investment real property, allowing equity to be utilized without diminution by payment of income taxes on gains from sale.