1031 EXCHANGE ADVISORY SERVICES

Under Section 1031 of the Internal Revenue Code, owners of business or investment properties, through the use of a qualified intermediary, can sell one property and purchase a similar or “like-kind” property while deferring capital gains. Capital gain taxes on the sale of the relinquished property are deferred until the replacement property is sold at a future date.

LORICO works with tax and legal advisors and qualified intermediaries to develop a strategic plan to maximize the benefits of a client’s 1031 exchange. LORICO has extensive experience acting as structuring transactions involving replacement properties of traditional triple net, multi-tenant retail, industrial, office, and shopping center investments on a national scale.

Benefits and advantages of 1031 exchanges include:

• Estate preservation
• Buying power increase due to greater cash flow
• Selling power increase due to the fact that federal capital gain tax liability is deferred
• Possibility of increased income
• Relocation possibilities for business or investment property
• Exchange for property that requires less management
• Consolidation of smaller properties into larger properties
• Business expansion possibilities into a larger space