Discover Tax Deferred

1031 Exchanges

“No gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment, if such real property is exchanged solely for real property of like-kind which is to be held either for productive use in a trade or business or for investment.” 

A 1031 exchange allows you to avoid paying capital gains taxes when you sell investment real estate and reinvest the proceeds from the sale within certain time limits in real estate of equal or greater value.

Many of our clients purchase TIC ownership through a 1031 exchange. A 1031 tax-deferred exchange is a method of selling one property and acquiring another without paying capital gains tax on the transaction. In such an exchange, the deferral of capital gains tax is indefinite.

In 2002 the IRS endorsed the TIC ownership structure as an acceptable means of deferring capital gains tax  through a 1031 exchange. Our properties satisfy all of the requirements for this tax-deferral vehicle. By consistently maintaining an inventory of excellent properties, Millcreek Commercial Properties is always able to help our clients meet the strict timelines imposed to complete an exchange.

Owning a Residential Rental

• Property Type: Residential Rental
• Sales Proceeds: $410,000
• Monthly Rental Income: $1,700
• Monthly Expenses: ($300)
• Monthly Profit: $1,400
• ROI: 4.10%

Owning a Commercial Property

• Property Type: Commercial Real Estate
• Ownership: $410,000
• Monthly Rental Income: $2,050
• Monthly Expenses: ($36)
• Monthly Profit: $2,014
• ROI: 6%

Residential Rental

  • Purchased in 1992
  • Purchase price: $100,000
  • Land value: $20,000
  • Anticipated Net proceeds from sale: $500,000

Stock Market

  • Net proceeds: $500,000
  • Depreciation recovery: $80,000 * .25 = $20,000
  • Federal capital gains: $400,000 * .20 = $80,000
  • NIIT: $400,000 * .038 = $15,200
  • State taxes: $400,000 * .075 =
    $30,000
  • Total tax: $145,200
  • Total amount to invest: $354,800

 

Millcreek Commercial Property

  • Net proceeds: $500,000
  • Depreciation recovery: Deferred
  • Federal capital gains: Deferred
  • NIIT: Deferred
  • State taxes: Deferred
  • Total tax: Zero
  • Total amount to invest: $500,000

Watch Spencer Taylor, Millcreek Commercial Co-Founder, talk about the Benefits of a 1031 Exchange.

Safe, Secure, and Stable Returns

You get a rigorously vetted property that is fully-managed, giving you more time to do the things you love. Leave behind the hassles of traditional residential real estate.

Success Stories

 

Millcreek Commercial is the best company I have ever worked with in this industry! They helped me exchange my apartments for high-quality, triple net leased commercial real estate. Now I make money in my sleep.
Gabor Koltai

Millcreek Commercial has a lot of knowledge and experience in the commercial real estate industry (especially 1031 exchanges). More importantly, though, I have found that they pride themselves on integrity.
Mitch Doman

Millcreek Commercial is one of the best and safest ways to invest in Commercial Real Estate. These guys have great products for everyone. I am always confident that when I refer clients to them, they will be well taken care of.

Nick Manville

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