Rowe Law Firm
Dealing with tax implications from the sale of a piece of property or business can be complicated and overwhelming. One way in which a business owner or individual selling investment property can avoid paying taxes on the gain is through an IRS Section 1031 exchange. A 1031 exchange is essentially using the proceeds from the sale of one piece of property in order to purchase another. At the Baton Rouge, Louisiana, based Rowe Law Firm we explain 1031 exchanges to our clients and assist them if they choose to pursue this alternative.

In order to qualify for a 1031 exchange, six requirements need to be met in order to comply with IRS regulations. We assist our clients in ensuring they meet these six requirements and act as their qualified intermediary in preparing the documents for the 1031 exchange.

The requirements that must be met are:
1.Both old and new properties must qualify for business or investment usage.
2.The property owner has 45 days from the closing of the sale of the old property to list properties they may want to buy.
3.From the sale closing date, the property owner has 180 days to close on the purchase of one or more properties from the 45-day list.
4.The IRS mandates using an independent qualified intermediary to prepare the legal documents for a 1031 exchange. The qualified intermediary will hold money in escrow so that the property owner does not have access to it.
5.Purchase and title in the new property must be the same as the old property.
6.To defer all capital gain tax, the new property being purchased must be equal or higher in value then the property that was sold. In addition, all cash proceeds from the sale must be reinvested.

Contact Rowe Law Firm

5157 Bluebonnet Boulevard
Baton Rouge, Louisiana  70809
Phone: 225-293-8787
Toll Free: 877-335-7910
Fax: 225-293-7668


Service Area

Statewide service provider in:
  • Louisiana