Futterman, Sirotkin & Seinfeld, LLP
Free Consultations *
For Personal Injury and Medical Malpractice Matters Only
toll free: 866-679-2513
Kew Gardens: 718-577-2573
Woodbury: 516-681-0250
contact Menu
We continue to be here for you as we monitor the current COVID-19 health crisis. Futterman, Sirotkin & Seinfeld remains open. Our staff is working remotely and the firm will continue to be functional and operational.
You can reach all of us via email or leave a message on our phone extensions and we will return the calls as quickly as possible.
We are concerned about the health and safety of all of our clients and wish all of you the best during these difficult times.

Over 60 Years In Queens County

Thank you so much for all your help. You are a true God send and I feel blessed for having your assistance. Wishing you and your family well wishes and a Happy New Year too!

Thank you for “services rendered” to my complete satisfaction. On that note, a special thank you to Judy Ramirez and Veronica Fuentes for their many contributions. With your knowledge and experience...

Thank you for doing such a great job representing my son on the purchase of his condo. As I am sure you could tell, he was very nervous about the whole thing, been waiting for the other shoe to...

On behalf of the family of the Estate of Marlene U., I would like to express my sincere gratitude to the law firm of Futterman, Sirotkin & Seinfeld, LLP for its unwavering commitment...

I feel blessed that somehow your firm in and my life crossed because the result is the quality of my mother’s life in respect to current and future needs is secure …

Dear Martin and Ira, thank you so much for working so hard on my case for so many years. My life changed 10 years ago when this occurred. I'm glad this chapter of my life has closed.

Just wanted to express how happy I am with your firm. I have known you for over 15 years starting with the purchase of my first home and when I continued utilizing your services when...

Words can not fully express how grateful and impressed I am with your outstanding services. Working with you and your staff not only made me feel comfortable and reassured but ...

I wanted to express my sincere gratitude for your efforts over the last two years regarding my case. Your attention to the details surrounding-my case was second to none...

Me sentir bien comoda con mi dos abogados, el Sr. Martin y el Sr. Futterman, que me trataron mi caso con mucha delicadeza y puecieron mucho tiempo en mi case

Read More Testimonials
view our Practice areas

Information on 1031 tax deferred exchanges

Internal Revenue Code Section 1031 allows owners of real estate investment property to sell their property and purchase new property with the proceeds of the sale while deferring the taxes which would ordinarily be due as a result of the capital gain realized on the sale. This is commonly known as a "1031 Tax Deferred Exchange", or a "Like-Kind Exchange". There are very specific rules which must be strictly adhered to for this vehicle to be successfully employed. However, if properly handled, the 1031 exchange can allow investors to legally defer the payment of capital gains taxes which would ordinarily be due on the profits realized from the sale.

The real property must be exchanged with "like-kind" real property. This term is very broadly defined by the I.R.S. and essentially means that all real estate is considered to be "like-kind" with other real estate provided that the property is not owner occupied and is not held primarily for sale. Therefore, personal use of property as a second home does not qualify, nor does the sale of your primary residence.

Furthermore, there is a very strictly enforced deadline of forty-five days from the date of the closing on the property being sold to identify the replacement property that you intend to purchase. You must then close on the property to be acquired within 180 days of the closing on the relinquished property, or due date of the property owner's tax return for the year in which the transfer of the relinquished property occurred, whichever occurs first. There are absolutely no extensions of this period for any reason whatsoever.

The seller cannot receive any of the funds from the sale. The proceeds go to a "Qualified Intermediary" who parks your money for you as a "safe harbor" until you are ready to purchase the replacement property. There are several companies which facilitate the "like-kind exchanges" and will work with you to coordinate the transaction. These companies serve as "Qualified Intermediaries".

If you are considering the use of a 1031 Exchange, you need to discuss the benefits of doing so with your accountant or financial adviser before making a decision as to whether a 1031 exchange is right for you. In addition, it is imperative that you advise your attorney at the time that the Contract of Sale is entered into that you might be using the 1031 Exchange, because specific language must be added to the Contract of Sale to facilitate the exchange.

No Comments

Leave a comment
Comment Information

Privacy Policy | Law Firm Marketing by FindLaw, part of Thomson Reuters.