TIP Commercial
Your Local 1031 Exchange Advisors
At TIP Commercial, we are a New Jersey real estate agency that specializes in 1031 Exchange. Two of our most renowned agents, Jason Trembicki & Craig Fernsler team up on many 1031 assignments. Jason specializes in Multifamily & Development, while Craig specializes in “hands off” Retail properties.
We’re extremely passionate about helping our clients grow their real estate portfolios. Therefore, we know 1031 Exchange real estate is a strategy that helps our clients achieve that.
Our team approach provides a wealth of knowledge and experience to our clients. Moreover, it allows for a detailed approach from the initial consultation to the closing of escrow.
Our New Jersey 1031 Exchange company can help a variety of clients including those interested in expanding and diversifying their portfolio. Additionally, our 1031 Exchange real estate approach can also help consolidate an existing portfolio. We’ll ensure that your strategy is executed and that the 1031 Exchange rules and requirements are met.
Additionally, at TIP Commercial, we have a variety of listings available. This includes everything from condos for sale, apartments for sale, and apartment buildings for sale.
Meet our 1031 Exchange Advisors
The 8 Steps of a 1031 Exchange
A 1031 Exchange allows an investor to sell an investment property and buy similar property without paying capital gains tax.
This procedure gets its name from Section 1031 of the U.S. Internal Revenue Code. It allows you to sell an investment property and reinvest the proceeds without paying capital gains taxes. All of this as long as the exchange happens within certain time limits in properties of equal or greater value.
Sell Property
Give Capital Gains to Qualified Intermdeiary
Identify Like-Kind Property Within 45 Days
Send Duty Letter to Quailified Intermediary
Negotiate with Seller Of Like-Kind Property
Agree On Sale Price
Have Your Intermediary Wire Capital Gains To Titleholder
Fill Out Form 8824
1031 Exchange Rules
Imagine an apartment building owner decides to sell his property (relinquished property). Through a 1031 Exchange, they can purchase other apartment buildings for sale (replacement property) with the proceedings of the sale. Through this process, they can avoid paying federal taxes on the sale of the original building. However, they can only defer capital gains taxes if they follow a set of 1031 Exchange rules which include:
The replacement property should be of equal or greater value to the relinquished property.
The replacement property must be identified within 45 days.
The replacement property must be acquire within 180 days of selling the relinquished property.
The Role of Qualified Intermediaries
and 1031 Exchange Companies
Under section 1031, any proceeds received from the sale of a property remain taxable. For that reason, proceeds from the sale must be transferred to a qualified intermediary, rather than the seller of the property. Then, the qualified intermediary transfers them to the seller of the replacement property or properties.
A QUALIFIED INTERMEDIARY is a person or 1031 Exchange company that agrees to facilitate the process. They do this by holding the funds until they can be transferred to the seller of the replacement property. The person qualified for a 1031 Exchange can have no other formal relationship with the parties exchanging property. The 1031 Exchange advisors at TIP Commercial, recommend using 1031 Corp, which is listed in our About section.
You can also get in touch with us to inquire for additional details on 1031 Exchange real estate in New Jersey. We can offer information on apartments for sale, condos for sale, and other available replacement properties.
