Property Exchange

"Our clients recognize the experience of our Property Exchange practice group and our ability to plan and facilitate a successful Section 1031 exchange. The exchanges upon which we have rendered advice include, Deferred Exchanges - those in which the relinquished property is sold and the target property is acquired later, Reverse Exchanges – those in which the target property is sold, and Build-to-Suit exchanges – those in which exchange funds are used to build on the target property. Our long term experience in planning and implementing these unusual exchanges helps to result in their compliance with the strict rules of Section 1031."

Stanley L. Blend
Tax Practice Group Leader,
Chairman of the Board and Shareholder

The Property Exchange Group at Oppenheimer, Blend, Harrison and Tate, Inc. consists of attorneys who have structured transactions under the provisions of Section 1031 to affect millions of dollars of tax savings for property owners. With the numerous transactions that can benefit from Section 1031, if you are disposing of property or acquiring property, you should consider whether Section 1031 can save you tax dollars. If it can, our attorneys can assist you in structuring the transaction.

Our Expertise

Section 1031 exchanges are driven by the Internal Revenue Code, case law, the Income Tax Regulations and other public announcements by the Internal Revenue Service. If the rules set forth in these authorities are not carefully followed, an exchange may be taxed. Thus, each Section 1031 exchange should be overseen by a tax professional with broad knowledge in this area. We have extensive experience with these rules, and have provided advice on numerous exchanges. Our creative planning ideas have helped save property owners millions of dollars in taxes.

The significant tax benefits provided by Section 1031 attract taxpayers and the IRS when large dollars are involved. Thus, it is important to ensure that you have experienced advisors when entering into a complex Section 1031 exchange. To help provide assurance regarding the bona fides of certain structures we write opinion letters on tax, real estate, and business issues that arise in the Section 1031 exchange context.

A client may want to obtain a private letter ruling from the Internal Revenue Service that its transaction complies with Section 1031. Our attorneys have successfully represented clients before the Internal Revenue Service and obtained favorable private letter rulings.

From time to time disputes arise with respect to Section 1031 exchanges. When they do, we can serve as an expert witness. And if you find yourself involved in a dispute, our knowledge, experience, and professional reputation can add credibility to your position.

Many exchanges involve at least one business entity and, as a part of the Section 1031 exchange, the business entity may be reorganized, dissolved, or a new entity may be created. These types of situations raise tax issues outside of Section 1031 and legal issues that must be considered and properly handled. In such transactions, we provide tax advice with respect to the business aspects of the transaction. We also contribute our skills as corporate and business attorneys to ensure that the transactions obtain favorable legal results.

Owning property as a tenant-in-common can provide great convenience. Marketed tenancy-in-common interests can facilitate a Section 1031 exchange. If done incorrectly, however, an investment in a tenancy-in-common interest can destroy a Section 1031 exchange. We help you ensure that a tenancy-in-common interest satisfies all of the requirements of Section 1031 and relevant securities laws. For property owners who wish to establish and market tenancy-in-common arrangements, we have the skills and resources needed to help ensure such endeavors satisfy the necessary laws and rules.

In those unfortunate situations when the Internal Revenue Service challenges a Section 1031 exchange, it is important to hire counsel who has experience in handling tax controversies both at the appellate level within the Internal Revenue Service and before the United States Tax Court. Our Group has extensive experience in tax controversies. We can assist any taxpayer who is involved with any type of tax controversy.

Whenever personal property is involved or improvements are being made to replacement property, it is important to consider the sales and use tax issues that may arise. We have a deep knowledge in sales and use tax planning and have successfully handled sales and use tax controversies with the Texas Comptroller. It is often necessary to draw on this knowledge when structuring an exchange.

With one of the most respected Real Estate practices in Texas, we can handle real estate issues that may arise with respect to a Section 1031 exchange involving Texas real property, including title review, document preparation, and closing.

With the complex nature of Section 1031, every exchange intermediary should be represented by qualified legal and tax advisors. We have experience, as outside counsel to exchange intermediaries, providing advice with respect to the sufficiency of exchange documents, the adequacy of an intermediary's business structure, and the proper flow of funds and property. By drawing on our experience in this area, exchange intermediaries are able to reduce their risk exposure, help ensure that the property owners' money and property are protected, and provide exchange documents consistent with the requirements in Section 1031.

While we do not act as intermediary, escrow agent, or trustee with respect to any Section 1031 exchange, we have worked with many intermediaries, title companies, and banks and have established a rapport with them. This rapport helps make an exchange work seamlessly and efficiently.

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