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Properly Structured 1031 Exchange Helps Client Defer Capital Gains Taxes

Hodgson Russ represented a client in the sale of a multi-tenant medical office building for $18 million. The client then reinvested the proceeds of that sale in the  purchase of a retail shopping center in California for $15 million. Known as a like-kind or 1031 Exchange, this complex transaction was structured in such a way as to help the client defer capital gains taxes on the sale of the relinquished property.