Property Owners Can Now Rollover Their Property Or 1031 Proceeds Resulting In Substantial Potential Tax Savings With Greater Flexibility
NEWS PROVIDED BY
U.S. Real Estate Management, LLC.
Nov 15, 2016, 10:14 ET
VERO BEACH, Fla., Nov. 15, 2016 /PRNewswire/ — U.S. Real Estate Management, LLC (“USREM”) has been formed to aggregate real estate property, and the proceeds from the sale of real estate property. USREM will accept funds qualified as an IRS Section 1031 rollover, or property which an owner was considering for sale, and either, retain and manage the assets, and/or eventually roll the assets into a Real Estate Investment Trust (“REIT”), if the Partnership so desires. The Partnership has established offices in New York, New Jersey and South Florida.
Chris Delaney, the Manager and a Member of U.S. Real Estate Management, LLC stated, “By contributing real estate and/or real estate proceeds into an IRS Section 721 qualified entity, the contributors can increase their portfolio diversification of their real estate investments, provide them with a readily available place to invest 1031 proceeds, while deferring costly capital gains and depreciation recapture taxes that may otherwise occur.”
Larry Stempler, ESQ., the Partnership’s in-house counsel and a Member, stated, “The IRS allows an investor to exchange property held for investment or business purposes for shares in either a Real Estate Investment Trust or a qualified Operating Partnership (“OP”), as defined by the IRS, without triggering a taxable event. This financial structure is also sometimes referred to as an UPREIT which can remain in the Operating Partnership or eventually be transferred, tax free, to a REIT or possibly through to one’s estate.”
In a typical property sale, the seller would pay taxes on the capital gains realized as well as the depreciation that was utilized to defer taxes on the property’s income. USREM’s exchange allows investors to avoid these taxes and keep their wealth working for them in a tax-deferred exchange of their investment property. The Section 721 exchange structure provides greater flexibility for our partners since it enables long term diversification across geography, industry, tenants, and asset class as USREM grows.
About U.S. Real Estate Management, LLC.
For more information visit www.usremanagement.com.
U.S. Real Estate Management, LLC has been formed by a seasoned group of real estate, legal and financial professionals to aggregate real estate property, and the proceeds from the sale of real estate property.
Chris T. Delaney
Milton H. Barbarosh, CPA
SOURCE U.S. Real Estate Management, LLC.
The time (at Blue Vault's 2nd Annual Broker Dealer Educational Summit) proved extremely informative.