How to Defer Capital Gains Tax on CRE

If commercial real estate is part of your investment portfolio, 1031 Exchange can be a powerful tool to preserve capital and grow your portfolio. Part of successful CRE investing is to know when to hold a property and when to sell. If it’s time to sell, using 1031 Exchange rules allow you to defer capital gains taxes. By reinvesting sale proceeds into a like-kind property of equal or greater value, your money is directed to increase your holdings.

However, the key is to meet the strict deadlines. It’s essential to work with a qualified intermediary so funds are handled properly and timelines are met. There are no extensions. Additionally, I recommend working year round with a tax professional that understands commercial real estate investing. As we wrap up Q3, it’s a good time to evaluate your holdings, review your goals, and evaluate how you’re doing.

Jeff Salzbrun is the owner/broker of Commercial Equities Group (CEG). As a veteran-owned real estate brokerage, CEG has been involved in thousands of sale and lease transactions, ranging from single offices to 250,000+ square foot buildings. At CEG, we get your deal done. We know space, and we know the CRE business.

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