Shining light on tax code

Tax Break: Barbara M. Ackaway and her son, Joe Ackaway, of RI 1031 Exchange Co., help investors with property exchanges. / PBN PHOTO/MICHAEL SALERNO
Tax Break: Barbara M. Ackaway and her son, Joe Ackaway, of RI 1031 Exchange Co., help investors with property exchanges. / PBN PHOTO/MICHAEL SALERNO

If an individual sells an investment property to buy another, there’s theoretically no economic gain, thus the U.S. Internal Revenue Service says he or she will not be charged taxes.

This little-known facet of the U.S. Internal Revenue Service code, known as Section 1031, is the basis for Barbara Ackaway’s Johnston-based business, RI 1031 Exchange Co. LLC, which launched in September.

“I believe it’s important to educate investors to let them know these types of [opportunities] are available to them,” said Barbara Ackaway.

A former IRS agent, she acts as a “qualified intermediary” for clients, meaning she holds investors’ money in escrow until the like-investment asset is purchased.

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Thus far, Ackaway has done this type of work for real estate clients, but has recently been looking into maritime investments, which could expand her opportunities in the Ocean State.

She runs the business with the help of her son, Joe.

“I feel like it’s going to take a lot of legwork, but I’ve already had a very positive response,” she said. •

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