1031 Exchange in New York – Your Guide to Rules, Exchange Companies, Requirements and More

Last updated on February 6th, 2021 at 02:53 pm

New York is possibly one of the most lucrative and financially beneficial real estate markets in the world. Real estate investors have been flocking to the state for years in order to cash in on high dollar housing and other properties. Because of this, it can be incredibly competitive and makes for a large pool from which you can invest and potentially profit. This is why it is imperative that you understand the benefits and regulations involved with a 1031 exchange in New York. 

In order to make money in the real estate industry, it is essential that you are constantly looking for new opportunities. However, real estate transactions can add up through things like capital gains taxes and other fees. A 1031 exchange in New York could end up working wonders for someone who was interested in diversifying their real estate investment portfolio. If your property transactions are not properly managed, you could end up paying a lot more than you had bargained for to the government, which could quickly eat up your profits.

Luckily, we have put together the ultimate guide to the 1031 exchange in New York. With this article, you can understand exactly how you can benefit from this section of the tax code. By understanding the basic principles as well as some of the laws specific to New York, you can prevent loss of your profits with every real estate transaction you make. We have also put together a list of some of the best companies that can help with a 1031 exchange in New York, which we have researched and vetted to ensure their financial stability and experience. 

1031 Exchange in New York Rules Basics

A 1031 exchange in New York is a section of the Internal Revenue Code that says any real estate investor can reinvest the proceeds from a property sale into another, similar property without paying the capital gains tax on the new property. This is a great way to defer the taxes that might otherwise be due when investing in new real estate ventures. Instead of completely cashing out when you sell the previous property, you simply transfer the funds into a new one. 

One of the major requirements of a 1031 exchange in New York is that the new property must be considered “like-kind.” This means that the new property must serve the same type of purpose and have the same legal qualifications as the one that it is being exchanged for. For example, a retail property must be exchanged for another retail property, etc.

However, these properties do not necessarily have to be of the same quality and have the same exact makeup. A single unit can be exchanged for a duplex and an unimproved property can be exchanged for an improved one. In this regard, there are many options for what is considered a “like-kind” property in the eyes of the law. 

You must also complete the transaction with a qualified intermediary. This means that you can not perform a 1031 exchange in New York by yourself. You must hire a company to handle the exchange. In the state of New York, you must begin the process of the exchange within 45 days of selling the original property and you must close the deal on the new one within 180 days of the original sale.

These two time periods run concurrently, so it is incredibly important that you hire an intermediary that is experienced and reputable. That’s why we have put together a list of the best companies for a 1031 exchange in New York to help you narrow down the field. 

1031 Exchange Rules Specific to New York

While most of the rules for a 1031 exchange in New York are the same as they are everywhere else, there is one important distinction that is made for the state. This distinction has to do with people performing a 1031 exchange in New York when they are not a resident. Should you perform a 1031 exchange in New York on a property without being a resident, you will be subject to a 7.7% state income tax rate. 

However, if you are going to reinvest the proceeds in a “like-kind” property out of state, you will be allowed to file an exemption to this income tax. By utilizing a 1031 exchange in New York and also filing the exemption using New York Form IT-2663, non-residents can avoid paying the sometimes hefty fees that are incurred when buying and selling New York real estate. 

Why Do a 1031 Exchange in New York?

There are a number of reasons to do a 1031 exchange in New York as a real estate investor. One of the main reasons is that you can end up saving yourself a lot of money by deferring these taxes. By using like-kind exchanges, you can continue deferring the taxes that you would normally have to pay on each transaction. This can allow you to continuously acquire new properties that can potentially bring in more income without having to pay the capital gains tax until you finally cash out on the property. Using the 1031 exchange in New York, many investors have deferred their taxes for several years before they are liable for them at the end of the final investment property. 

One of the important distinctions that must be made regarding a 1031 exchange in New York is that it is not available for properties that are considered a primary residence. For example, it can be utilized for a property such as a retail storefront or a facility for a business. If you have a business that has to expand and need a more suitable facility for this, you can use the 1031 exchange in New York to upgrade the property without being responsible for the taxes that might slow down the expansion.

However, you are not eligible for the exchange if you are simply upgrading a primary residence. A reputable company that handles 1031 exchanges in New York will be able to help you figure out if the property you are exchanging will be eligible. 

Best 1031 Exchange Companies in New York

When initiating a 1031 exchange in New York, you will have to hire a qualified intermediary to handle the money and put it in escrow before purchasing the like kind property. It is incredibly important that you work with a company that is experienced in these transactions and understands that time is of the essence when they are taking place. 

A 1031 exchange in New York must be closed within 180 days of the first property being sold. This means that you should work with a company that can expedite the transaction quickly and is financially stable. Your original property’s sale money will be kept by the 1031 exchange company before it is transferred to the seller of the like kind property. Because of this, you will want to be sure that the company is stable enough that you can trust them with the money in escrow. That’s why we have put together this list of the best companies to handle a 1031 exchange in New York. 

Legal 1031

1031 exchange in new york legal 1031

Legal 1031 is a company that can handle a 1031 exchange in New York because they have the experience and know-how to do it. They have been helping clients make their 1031 exchanges for years and they have a unique approach to the whole process. As opposed to some of the other 1031 exchange companies out there, they are interested in you as a client. They have a process that is both tailored to you individually and draws upon their experience with the industry. 

They will speak to you personally and ensure that you feel comfortable with the experience. They see you as more than a number and a name and want to retain you as a client for any future transactions. They understand that people who are initiating a 1031 exchange in New York will be doing more in the future and this is what drives their business philosophy. 

By taking the uncertainty out of a 1031 exchange in New York, you can feel sure that you are going to be in compliance with the law. They will work with you to keep everything above board and make sure that you are not going to be hit with any back taxes or fees further down the road. 

1031 Exchange in New York Services Legal 1031 Offers

Legal 1031 offers a wide variety of services in the realm of the 1031 exchange in New York. They strive to be a one stop shop for people who are serious real estate investors. Because of this, no matter what kind of 1031 exchange in New York you are looking to start, they can help you with it. Their years of experience means that they can help you no matter what the circumstances are. The 1031 exchange in New York services they offer are:

  • Reverse Exchanges
  • Delayed Exchanges
  • Improvement Exchanges
  • Property Conversion

Legal 1031 Experience and Financial Stability

Legal 1031 prides themselves on their experience in the industry. The leaders of the company are lawyers and CPAs who have been working with clients for years in all aspects of real estate and finance. Not only are they experts on the industry, many of them have written articles and books on 1031 exchanges in New York as well as other tax-related topics. Because of this, they have enough experience to guide you along the way on your own tax deferred real estate exchanges. 

Legal 1031 also opens up an individual escrow for each of their clients’ funds. This allows you to feel safe putting your funds in escrow with them. They do not pool the funds in the same place like some other companies will do. Because of this, your funds will be exactly where they need to be when the time comes to take them out of escrow and complete the transaction. 

Legal 1031 Locations and Customer Service

Because Legal 1031 is so focused on individual interaction, their customer service is second to none. You will be dealing with an actual person and not filling out forms online and sending them to a faceless company. This allows them to give you the kind of face to face attention that a transaction like a 1031 exchange in New York so desperately needs. Their office is located at:

  • New York City – 805 Third Avenue 10th Floor, New York, NY 10022

New York 1031

1031 exchange in new york new york 1031

One of the most important things to look for in a company to help you with your 1031 exchange in New York is where they are practicing. There are a great deal of large, national companies that are perfectly capable of being a qualified intermediary for your transaction. However, it is always best if you work with an intermediary that is experienced with the area that you have decided to invest in. They will know the market incredibly well and will be able to help you with any region specific questions you may have. 

New York 1031 is just such a company. They have been working in the New York area for years and have all the necessary know-how about what properties will qualify and whether or not you are making the right financial decision. In an industry like real estate investment, having this kind of experience on your side will always be a major plus, and New York 1031 has that exact experience. 

1031 Exchange in New York Services New York 1031 Offers

Because they have dedicated themselves specifically to the 1031 exchange in New York, New York 1031 has the ability to focus on helping you as a client. There are many different ways that you can take advantage of this area of the tax code and their expertise is what makes it possible for you to do it even if your circumstances are different than others’. The different ways of utilizing the 1031 exchange in New York are reflected in the services they offer. These services include: 

  • Forward Exchanges
  • Reverse Exchanges
  • Construction Improvement Exchanges

New York 1031 Experience and Financial Stability

Because New York 1031 has so much experience with 1031 exchanges in New York, their qualified intermediaries know exactly what to do with your particular needs and financial circumstances. They can help you facilitate the transaction as well as help you find qualified replacement properties. 

They not only can help you with the transaction, they can also shield you from the funds entirely, making sure that you are never liable for any taxes since you never received them. This is one of the key aspects of a 1031 exchange in New York that many investors fail to consider. This can lead to unexpected fees and taxes that can quickly eat into your investment profits. 

New York 1031 Locations and Customer Service

New York 1031 is located right in the heart of New York City, but they are qualified to operate in many different areas and marketplaces within the state. This is one of the reasons they are so popular with investors since they have a centralized location, but can easily help you if you are investing in other parts of New York State, including Rochester, Albany, Buffalo and more. Their central office is located at:

  • New York City – 600 Third Avenue, 2nd Floor, New York, NY 10016

Asset Preservation Incorporated

1031 exchange in new york asset preservation incorporated

Since 1990, Asset Preservation Incorporated has been working with clients on their tax deferred real estate transactions. This long history is one of the things that allows them to have some perspective on the ins and outs of the business as well as understand how the market changes over time. In their time in business, they have completed over 180,000 1031 exchanges and this is why they are one of the leading companies working with these transactions today. 

Asset Preservation Incorporated is a national company, which means that they have offices all over the United States. Because of this, they have a nationally backed means of making sure your funds are safe when they are in escrow and that you do not have to worry about anything going awry before your 1031 exchange in New York is carried out. This assurance is worth a lot to people who are perhaps going through this type of transaction for the first time. If you are new to 1031 exchanges, they could be a great choice. 

1031 Exchange in New York Services Asset Preservation Incorporated Offers

Asset Preservation Incorporated offers all kinds of 1031 exchanges to match your individual circumstances and demands. Not all exchanges are going to require the exact same techniques and processes. Because of this, they offer services that will cover any of your needs. The 1031 exchange in New York services they offer are:

  • Delayed Exchanges
  • Improvement Exchanges
  • Reverse Exchanges

Asset Preservation Incorporated Experience and Financial Stability

Asset Preservation Incorporated’s Northeast Division Manager is Pamela Michaels, ESQ. Pamela has been working with people for years to perform legal and efficient 1031 exchanges. This kind of experience is one of the things that people look for when searching for a qualified intermediary and her customer service stands out as one of her most valuable assets. 

One of the other things that makes Asset Preservation Incorporated a great choice is that they are backed by Stewart Information Services. This means that your funds are put into escrow with a large corporation that has the ability to protect your finances no matter what state the real estate market is in. This allows you to rest easy knowing that your funds are safe while the 1031 exchange in New York is being performed. 

Asset Preservation Incorporated Locations and Customer Service

Asset Preservation Incorporated has two offices in New York State. These two offices allow them to cover the entire state and put the kind of priority on your transaction that it deserves. Not all companies that will handle a 1031 exchange in New York have this kind of dedication to their customers. Their offices are located at:

  • New York City – 60 East 42nd St, Ste 1260, New York, New York 10065
  • Shirley – 1490 William Floyd Parkway, Ste 103, Shirley, New York 11967

Corcapa 1031 Advisors

1031 exchange in new york corcapa 1031 advisors

Corcapa 1031 Advisors is a unique company that specializes in the 1031 exchange in New York as well as helping you find the right property to exchange with your current investment. They work with Delaware Statutory Trust and Tenants in Common to help you find the right property that will not only qualify you for a 1031 exchange in New York, but also be a good investment in the future. This kind of real estate investment allows you to have your assets managed by Corcapa 1031 Advisors and keep it in good hands throughout your entire ownership period. Because of this, they are a great choice for people who are not as experienced with investing as others might be. 

By working with you to find the right property, they can assure you that you will be not only in compliance with the law, but that your new investment will have gone through their due diligence process. This allows you to let them take the wheel in areas that you may not feel comfortable working in. If you are a new investor, they are a good choice for your 1031 exchange in New York. 

1031 Exchange in New York Services Corcapa 1031 Advisors Offers

Because they have a wide variety of experience with all kinds of investments, Corcapa 1031 Advisors can help you with almost every aspect of your 1031 exchange in New York. They are much more than just a qualified intermediary. They are a company that is dedicated to your asset growth and management and can handle many different areas of your real estate investments. Some of the 1031 exchange in New York services that Corcapa 1031 Advisors offer are:

  • Due Diligence on Offerings 
  • 1031 Exchange Replacement Property
  • DST Ownership

Corcapa 1031 Advisors Experience and Financial Stability

Corcapa 1031 Advisors is dedicated to not only performing your 1031 exchange in New York, they want to help your investment grow as well. By allowing them to take the reins on your exchange, you will have the guidance of a professional real estate investor who will make sure that you are in compliance and that your replacement property will continue to be profitable in the future. 

Because they have a unique system, your transactions are handled by their team of professionals who perform extensive due diligence on all their investment properties. This allows you to be comfortable throughout the entire process because they are handling it every step of the way. 

Corcapa 1031 Advisors Locations and Customer Service

Corcapa 1031 Advisors is dedicated to your success as an investor. They run reports on every transaction throughout the process and provide you with updates in real time. This ensures that your 1031 exchange in New York is running smoothly and that your investment is safe and secure. 

Corcapa 1031 Advisors has offices all over the United States. Their New York office is located at:

  • New York City – 368 9th Avenue, 6th Floor, New York, NY 10001
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