Saunders one of only two brokers selected to speak in the national Facebook live stream
LAKELAND, Florida October 25, 2017 – Dean Saunders, ALC, CCIM, owner and broker of Coldwell Banker Commercial Saunders Real Estate, was invited to share his experiences structuring tax-deferred 1031 like-kind real estate exchanges at a live Facebook event hosted by the National Association of Realtors (NAR).
The NAR only selected two realtors from their national membership to speak at the live event hosted in Washington, DC on September 28, 2017. Saunders was joined by Raphael Barta, an associate at Century 21 RiverStone in Sandpoint, Idaho, and NAR’s tax policy expert, Evan Liddiard. The organization’s director of commercial real estate development and services, Jean Maday, interviewed the experts and conveyed live viewer questions about 1031 exchanges.
“It’s kind of like the oil in your car because it makes things smoother and removes the disincentive some sellers have because of the tax burden,” said Saunders. “1031 exchanges make things happen and encourage transactions that would otherwise not exist.”
A 1031 exchange, outlined in Section 1031 of the United States Internal Revenue Code, is a specific type of transaction which allows an investor or property owner to sell their property and invest the proceeds in a similar investment. If the funds are put in an approved like-kind real property for investment or business purposes, the capital gains taxes can be deferred. Property owners can continue to use the option to defer their capital gains taxes again and again through multiple transactions over the course of a lifetime, providing a long-term mechanism to build wealth.
“As an example, if someone purchases a property for $500,000 and in 10 years sells it for $1.5 million, they have a $1 million capital gain,” explained Saunders. “At a 4% interest rate from a non-real estate investment of the after-tax capital gains from the sale, it would take 11.5 years to recoup the taxes and investment opportunity lost by not utilizing a 1031 exchange. There is a real incentive not to take that loss.”
About Coldwell Banker Commercial Saunders Real Estate
Coldwell Banker Commercial Saunders Real Estate is regarded as an authority on all types of Florida land and conservation easements, transacting over $2 billion in sales from 1996 through mid-2016. Offering land, forestry, and conservation easement real estate services through CBC Saunders Real Estate and the CBC Saunders Real Estate |Forestry Group, the Saunders team of land professionals and foresters offers advisory and transactional services through the home office in Lakeland, FL, the North Florida office in High Springs, FL, and its network of Coldwell Banker Commercial affiliate offices nationwide and worldwide. We provide services to land and commercial clients through both CBCSRE and our commercial real estate brokerage, Coldwell Banker Commercial Saunders Ralston Dantzler Realty.