Smith Paulson O’Donnell & Associates, PLC represents individual and commercial buyers and sellers of real estate in Monticello and throughout the northwest Minneapolis metropolitan area in all aspects of real estate transactional and litigation matters.
We assist clients in connection with boundary disputes, closings, contract for deed law, deeds, evictions, landlord/tenant law, leases, mortgages, title insurance, title problems and searches, Torrens property, and 1031 Tax-Deferred Exchanges. Partner Gregory V. Smith has been certified as a Real Property Specialist by the Minnesota State Bar Association, and has more than 40 years of experience handling real estate matters.
1031 Tax-Deferred Exchanges
A 1031 tax-deferred exchange allows you to roll over the proceeds received from the sale of an investment property into the purchase of one or more other like-kind investment properties. It cannot be used for the sale of your personal residence. At closing, the proceeds are transferred to a third party who holds them until they are used to acquire the new property. Capital gains taxes are deferred if all of the exchange funds are used to purchase like-kind investment property. The deferment is like getting an interest-free loan on the tax dollars you would have owed for a cash sale. You retain more equity, which helps you move into properties of higher value each time you perform a 1031 exchange.