Tax Deferred Exchanges allow the investor to trade one income-producing property for another without paying capital gains tax on the property he is giving up.  A successful tax deferred exchange requires complying with complex and specific rules and regulations.  Ben Frederick III, CCIM has the experience and knowledge to help an investor complete a successful transaction.

The property currently owned is called the Relinquished Property.  The property acquired is known as the Replacement Property.  

The transaction must be characterized as an Exchange.  If the IRS classifies it as a sale and a purchase, capital gains taxes will be due.

Key Benefits

Capabilities

The first step in a successful transaction is to fully understand the goals and objectives of the client.  Is it reduced management stress and headache?  Is it growth from smaller properties into larger ones?  

Next, one most perform a cost-benefit analysis.  Tax deferred exchanges cost more in legal fees and other transaction costs than a straight sale.  If the anticipated taxes saved do not exceed the extra cost, a tax-deferred exchange may not be warranted.

As a broker, my expertise is in marketing property for sale, finding a buyer and negotiating terms for the Relinquished Property.  The contract must contain language to indicate that the transaction is an exchange and not a sale.  Also, the buyer must cooperate with documenting the transaction as an exchange.

With the client's best interests in mind, I search all available resources to identify property that meets the needs of the client and negotiate terms favorable to the client.

I handle the many details and coordinate the many players involved in achieving a successful transaction.

To realize the many benefits of a Tax Deferred Exchange, or to find out if such a transaction would benefit you, 
Contact Ben Frederick III at 410-435-5040 or send e-mail to click here to send e-mail to Ben Frederick

Copyright © 2006 Ben Frederick Realty, Inc
Last modified: 08/04/06