Maximize Your Returns with Our Comprehensive 1031 Exchange Review & Optimization
Are you confident your 1031 exchange is fully optimized? While many investors believe so, a staggering 99% may be missing out on significant tax-saving benefits. When we identify potential new clients who have completed a 1031 exchange in the past, we suggest a thorough exchange review. Often, clients initially believe their exchange was handled correctly. We typically invite them to "humor us" with a complimentary review. In many cases, our preliminary assessment indicates that the 1031 exchange calculations may be incorrect—discrepancies often obvious to the trained eye. Exchange Planning Corporation specializes in reviewing and optimizing past 1031 exchanges, ensuring you fully benefit from your real estate investments and secure your financial future.
Why a Thorough 1031 Exchange Review Matters
A 1031 exchange allows real estate investors to defer capital gains taxes by reinvesting proceeds from the sale of an investment property into a like-kind property. While the concept is straightforward, effectively navigating the detailed IRS requirements, complex calculations, and evolving regulations can be extremely challenging. Small mistakes or oversights, even if handled by experienced tax professionals, can result in significant missed tax benefits and the overpayment of taxes for years on income from the replacement properties.
Typical Oversights Uncovered in Our 1031 Exchange Reviews
Our in-depth reviews frequently reveal common yet costly errors in 1031 exchanges, including:
- Depreciation Schedule Mistakes: Miscalculating the allocation between land and building values can severely limit your depreciation deductions. Land is not depreciable, so accurately determining its value is crucial for maximizing tax savings. Adjusting these allocations can often yield significant additional deductions.
- Incorrect Property Basis Calculations: Errors in property basis calculations can substantially reduce available depreciation deductions and increase your taxable gains upon future sales. Many investors inadvertently carry forward incorrect basis calculations through multiple 1031 exchanges, dramatically compounding lost tax opportunities over time.
- Misunderstanding Depreciation Lifespans: The simplest oversights can lead to major discrepancies. For instance, many people know that residential property is generally depreciated over 27.5 years. However, most individuals, and even many tax professionals, do not realize that following a 1031 exchange into residential rental property, a portion of your new property basis can often be depreciated over a much shorter life. Not capitalizing on this will decrease your deductions and cause you to pay more tax.
The EPC Advantage: Specialized 1031 Exchange Expertise and Advanced Tools
Our dedicated focus on 1031 exchanges allows us to provide an unparalleled depth of service and strategic insight. Leveraging our proprietary software and extensive specialized knowledge, we offer:
- Detailed Error Correction: We utilize IRS provisions, such as Form 3115 (Application for Change in Accounting Method) and the Section 481(a) adjustment, to correct past depreciation errors without needing to amend previous tax returns.
- Optimized Property Basis: Our experts ensure accuracy in your property basis calculations to maximize both short-term depreciation benefits and long-term tax advantages.
- Comprehensive Financial Projections: We provide detailed, accurate forecasts of future tax implications and potential savings, empowering you to make smarter, long-term investment decisions related to your 1031 exchange.
Ensure Your 1031 Exchange Maximizes Your Tax Benefits
Don’t leave substantial tax savings on the table. Our meticulous 1031 exchange review and optimization process ensures your exchange meets all IRS standards and captures every available deduction, thereby protecting your investments and significantly enhancing your financial position.
Take the Next Step: Schedule Your Personalized 1031 Exchange Review
Have you completed a 1031 exchange in the past 20 years? If so, we believe it's highly beneficial to conduct at least a cursory review to ensure you are receiving all the tax benefits possible. Contact Exchange Planning Corporation today to schedule your comprehensive 1031 exchange review and discover the potential savings waiting in your real estate investments.
Email: ExchangeServices@EPC1031.com
Phone: (424) 277-6011
