1031 (Like Kind) Exchange

1031_Exchanges1031 Exchange (Like Kind Exchanges)

The Law Office of Harold F. Moody, Jr., P.C. handles a large volume of commercial real estate transactions on behalf of several national and regional lenders as well as commercial buyers and sellers utilizing the IRS capital gain deferral procedure known as the Section 1031 “Like Exchange”. This “Like Exchange” process affords individuals and businesses with an important strategy to preserve investment portfolios. Although the qualification requirements are strictly construed and enforced they are manageable when assisted by qualified and knowledgeable counsel and exchange company (qualified intermediary). If your commercial real estate investment will benefit from such a tax deferral technique our office can appropriately manage the transaction to help ensure your ability to gain the benefit of the exchange.

Our office can handle all the necessary purchase and sale paperwork to address the seller/buyer obligations to ensure compliance with the requirements of the Code. Our office also has a close working arrangement with a national exchange (intermediary) company (with a local presence) to effectively accomplish the deferral.

For further information the Internal Revenue Service has an informative brochure on the procedure (identifying and defining the characteristics of property eligible for the exchange) at their website:

http://www.irs.gov/uac/Like-Kind-Exchanges-Under-IRC-Code-Section-1031

When entering into a transaction to utilize the Internal Revenue Code 1031 (Like Kind) Exchange protect yourself by hiring experienced counsel to safeguard your interests throughout the process. Our experience allows us to provide the representation needed to informatively navigate the 1031 procedure smoothly and effectively.

 

Recent Posts

A Declaration of Homestead can provide protection for a multi-use property – Appeals Court upholds lower court decision.

Back in April of this year Attorney Christopher Knoth posted a blog reporting on a Bankruptcy court decision where the Homestead protections pursuant to Massachusetts General Laws Chapter 188 were found to be available to a mixed-use property.  Last week the Bankruptcy Appeals Court confirmed that decision making several noteworthy points.

The Court specifically noted that the Massachusetts Supreme Judicial Court had admonished (in a topic related decision) that the intended public policy and the purpose of the Homestead Act should cause courts to construe the homestead exemptions liberally in favor of debtors.  Consequently the Court held that the mere use of a residence for non-residential purposes, at least when the predominant purpose is residential, does not, by itself, preclude an exemption for the Property.

Although counsel for the appellant argued that any non-residential use of a structure would exempt it from the protections of the Homestead statute (citing that the statute itself specifically defined the properties which could enjoy the protection) the Court firmly rejected that argument (invoking our presently undefeated local professional football franchise to illustrate): “If a homeowner in Foxborough were to rent out her driveway to Patriots fans on Gillette Stadium game-days . . . it defies intuition to think she no longer lives in a single-family dwelling.”

It is still important to note that the Court did not mandate a hard and fast rule but rather indicated that evaluations (to determine a property’s “primary” use) would ultimately be made on a “case by case” basis.

This case provides another clear demonstration that a Declaration of Homestead can be an invaluable protection for Massachusetts homeowners.  The current Homestead statute even allows its filing for a property held in Trust.  Additionally, the Massachusetts Homestead Law increases (doubles) protection amounts for the disabled as well as for homeowners 62 years of age or older.

Contact our office to make sure you have recorded a Declaration of Homestead for your principal residence in Massachusetts!

Attorney Harold F. Moody, Jr.

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