Attorney Natalia Sishodia, a distinguished 1031 exchange lawyer from Sishodia PLLC, has recently released an insightful article on ‘1031 Exchange Laws in New York.’ This piece provides an in-depth analysis of 1031 exchanges, showcasing Sishodia’s understanding of this complex area of law.
In the first part of the article, the 1031 exchange lawyer explains the fundamentals of a 1031 exchange. Rooted in Section 1031 of the U.S. Internal Revenue Code, this tax code allows an owner of an investment real property to defer paying capital gains by exchanging their investment property with one of “like-kind.”
“1031 exchanges offer a legal way for property investors to reinvest the proceeds from a real property sale into a new property, deferring capital gains tax,” states 1031 exchange lawyer Natalia Sishodia. “These taxes are deferred until the final sale of an exchanged property.”
The article further emphasizes the purpose of a 1031 exchange. As the attorney elucidates, “A 1031 exchange allows a real estate investor to buy and sell property without being subject to capital gains tax.” This strategy is particularly beneficial considering the high capital gains taxes that can substantially eat into any profit realized in the sale of an investment property.
In addition to providing a clear understanding of 1031 exchanges, Sishodia enumerates various types of 1031 exchanges, including simultaneous, delayed, build-to-suit, and reverse exchanges. The article provides valuable insights into the intricacies involved in each type, helping potential investors make informed decisions.
One of the crucial aspects highlighted by Sishodia in the article is the role of a qualified intermediary in a 1031 exchange. “During the exchange of property, the investors engaged in the exchange cannot, at any time, receive any proceeds directly,” she explains. “All funds will be transferred through a qualified intermediary.”
The article also addresses the potential benefits of a 1031 exchange. According to Sishodia, “There are multiple reasons why a real estate investor may want to take advantage of a 1031 exchange.” Some of these reasons include the deferment of capital gains taxes, more available capital to reinvest elsewhere, postponement of depreciation recapture gain, and flexibility in the division or consolidation of properties.
The readers are encouraged to consider the assistance of an experienced 1031 exchange lawyer when undertaking such a transaction. Sishodia and her team of attorneys at Sishodia PLLC can guide investors each step of the way, ensuring that the exchange properties qualify and that they achieve the full tax benefits of their exchange.
Lastly, the lawyers explain the purpose of a 1031 exchange in the context of depreciation. “When depreciable properties are exchanged through a 1031 exchange, a depreciation recapture can be avoided,” says Sishodia, thus shedding light on another significant advantage of this type of transaction.
Taking all these insights into account, it becomes clear that Natalia Sishodia’s article is an invaluable resource for anyone keen on understanding or planning to pursue a 1031 exchange in New York.
About Sishodia PLLC:
Sishodia PLLC is a law firm based in New York City, known for its commitment to providing exceptional legal service in the field of real estate law. The firm is led by Natalia Sishodia, an experienced exchange lawyer with a deep understanding of 1031 exchanges. The team of lawyers at Sishodia PLLC is dedicated to assisting clients in navigating complex real estate transactions and ensuring they achieve the best possible outcomes.
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