SOURCE: 1031 Exchange Advantage

June 13, 2006 17:21 ET

Law Firms Add Revenue-Generating Service Thanks to Inflated Property Values and an 85-Year-Old Tax Rule

1031 Exchanges Find New Audience Among Homeowners, Smaller Investors

SAN DIEGO, CA -- (MARKET WIRE) -- June 13, 2006 -- Real estate investors, ranging from single-family homeowners cashing in on inflated property values, to savvy real estate speculators, are taking advantage of the heretofore little known 1031 rule that allows them to keep their profits tax free. IRS rule 1031 has been around for a long time, but is enjoying a new popularity among law firms, real estate brokers and individual investors thanks to large profits being gained from escalating property values.

Law firms are benefiting from the renewed interest in tax-deferred exchanges as attorneys are re-educating themselves on the 1031 rules in order to better serve their clients. Law firms are advising clients on the benefits of tax free exchanges, and at the same time generating more real estate closings while adding value to the client relationship.

Many law firms opt to use the services of certified exchange accommodators who handle all the paperwork and act as a resource for ongoing investment transactions and opportunities.

David P. Greenberger, president of 1031 Exchange Advantage, is a real estate attorney who has been helping investors profit from the sale and acquisition of real property for over 20 years. He conducts Tax Free Exchange Seminars for law firms and real estate companies. "We're seeing a continued increase in 1031 exchanges, even in what's being referred to as a down market for real estate," stated Greenberger. "Property values are still at record highs, and those seeking to re-invest are taking advantage."

"Since 1996, we have experienced the greatest increase in property values in many major real estate markets across the nation," states Greenberger. "In many cases property values have doubled since 1995 and in some cases only in the past three years. When these properties are transferred, they will account for some of the largest capital gains to be created in the history of the real estate market."

Prior to 1990, tax code regulations surrounding 1031 exchanges were so complex that investors needed an attorney opinion letter just to be safe. The grey issues subsided, and the cloak and dagger obscurity changed dramatically with the Omnibus Budget Act of 1990.

Contact Information