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kendall county real estate lawyerIn 2021, the median value of a home in the state of Illinois increased almost 50% from the median value in 2012. 10 years ago the median home value in Illinois was $157,000. In 2021 Zillow reported that number to be just under $230,000. Now, in 2022, that number has grown over 11% in just one year to over $267,000. The increasing home value is great news for real estate investors and owners of investment properties. However, the IRS (Internal Revenue Service) can and will go after a seller’s gains through taxes. A 1031 Exchange is one way that investors in real estate can avoid certain taxes by the IRS. 

What is a 1031 Exchange?

A 1031 Exchange is a tool that real estate investors and owners of investment properties can use to protect their gains from the sale of property from being taxed by the IRS. 

26 U.S. Code §1031(a)(1) states: no gain or loss is recognized if property held for productive use in a trade or business or for investment is exchanged solely for property of a “like-kind” which is to be held either for productive use in a trade or business or for investment.


kendall county real estate lawyerThe first step in the sale of commercial real estate property is the execution of the Commercial Sales Contract. The Mainstreet Organization of Realtors is the main (but not the only) contract for commercial real estate deals.

Attorney Review Period

The first step in the sale of a commercial real estate purchase or sale is negotiation of the attorney review period. The attorney review period is Paragraph 6 of the Commercial Sales Contract. Paragraph 6, Attorney Review Period, is the ability of either the buyer or seller’s real estate attorney to approve the contract; disapprove the contract; and/or propose modifications to the contract except for purchase price. Business negotiations must be finalized within ten business days after acceptance of the contract by the Seller(s).

In most buyer’s attorney’s attorney review contract, there is a phrase about extending the attorney review period until an agreement is reached or either party disapproves of the contract. Therefore, the 10-business day deadline is often repealed.


Yorkville Commercial Real Estate AttorneyForming an LLC or otherwise called a Limited Liability Company in Illinois is a wise decision. The first step in filing an Articles of Organization, which is the official process to become an Illinois LLC is to pick a business name. An LLC’s business name must be different and distinguishable from other LLCs and Corporations registered with the Illinois Secretary of State.

Differing business names reduces confusion and promotes accountability. Under Illinois law, the LLC must end with LLC, L.L.C. or Limited Liability Company. There are advantages of forming an LLC. These advantages include the following:

·         Limited Protection for the Business Owners

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