New York real estate attorney Natalia Sishodia (https://sishodia.com/new-york-1031-exchange-attorney-explains-how-to-defer-taxable-gain-on-property/) has recently published an insightful article titled ‘New York 1031 Exchange Attorney explains How to Defer Taxable Gain on Property’. The article illuminates the intricacies of the 1031 exchange, a crucial tool for property owners looking to defer capital gains tax on real estate transactions. The content, authored by a respected New York real estate attorney, is both comprehensive and accessible, catering to a diverse audience ranging from seasoned investors to novices in real estate trading.
In her article, Ms. Sishodia, a distinguished New York real estate attorney, elucidates how property owners can leverage the 1031 exchange to optimize their investments. According to her, “A well-structured 1031 exchange can resolve income tax problems by providing a tax deferral for taxpayers who want to sell their low-basis investment property, but do not want to pay federal and state income taxes.”
Attorney Sishodia meticulously dissects the benefits of employing a 1031 exchange, including increased purchasing power, diversification, and better cash flow. Moreover, the New York real estate attorney explains the various types of exchanges, such as simultaneous exchange, delayed exchange, build-to-suit exchange, and reverse exchange, and outlines the specific requirements for a valid exchange.
Quoting Sishodia: “The rationale behind the tax deferral is that the taxpayer’s investment is still the same, only the form has changed and it would be unfair to force the taxpayer to pay tax on a ‘paper’ gain.”
The article also details the critical role of a Qualified Intermediary and emphasizes the importance of stringent adherence to IRS regulations. Ms. Sishodia advises prospective 1031 exchange participants to be vigilant about common pitfalls and to seek counsel from a knowledgeable New York 1031 lawyer for a thorough understanding of the rules and procedures.
Another intriguing facet that the article delves into is the holding period for a 1031 exchange property. Natalia Sishodia enlightens readers on IRS guidelines, the implications of holding periods, and the significance of comprehensively documenting rental income, depreciation, expenses, and other relevant evidence.
“Numerous tax advisors recommend that property owners involved in 1031 exchanges adhere to a minimum holding period of one year. They also suggest keeping comprehensive documentation of rental income, depreciation, expenses, and other relevant evidence to demonstrate the property’s status as an investment property,” says Ms. Sishodia.
Natalia Sishodia’s article is an invaluable resource for anyone interested in maximizing their investment property profits while adhering to legal protocols. The article’s depth and clarity make it a must-read for individuals considering entering into a 1031 exchange. It is recommended that individuals looking to capitalize on 1031 exchanges reach out to Sishodia PLLC for tailored guidance and insights.
About Sishodia PLLC:
Sishodia PLLC is a premier law firm in New York offering personalized legal services and counseling in real estate transactions. With a commitment to integrity and excellence, the firm is driven by a team of legal professionals who are dedicated to empowering clients with the knowledge and tools necessary to make informed decisions in real estate investments.
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