Retirement Accounts and Real Estate


Our firm can establish a real estate investment structure allowing the use of funds held in retirement accounts (such as IRA’s) 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.

Tax-Deferred "Section 1031" Exchanges

Our services include acting as the Qualified Intermediary when selling investment real property, allowing the seller to reinvest the proceeds of sale by acquiring replacement real property, pursuant to Section 1031 of the Internal Revenue Code. This is referred to as a tax-deferred exchange and can effectively postpone the imposition of income taxes that would otherwise be due because of the sale. To accomplish the exchange, the proceeds from the sale are held in an exchange escrow account by the Qualified Intermediary until the closing occurs on purchase of the replacement property; at that time, the proceeds are released from escrow and used for that purchase. The IRS treats this as if you traded one property for the other; therefor, there might be no income tax due on the sale at that time. Depending upon circumstances, the actual tax consequences can vary and certain strict timing deadlines must be met for the transaction to qualify as a tax-deferred exchange under the U.S. Internal Revenue Code. You are invited to contact us for further details regarding this tax saving opportunity and how it might be valuable in your specific circumstances.