1031 Exchange Services
We help clients nationwide defer the capital gains tax with comprehensive 1031 real estate exchange services.
Reduce Tax Liabilities With a 1031 Exchange
Selling an investment property is an exciting time for an investor. It rewards them for their smart decisions, enabling them to increase their net worth and provide a more financially secure future for themselves and their family. However, the traditional process of relinquishing an investment exposes the proceeds from the sale to the capital gains tax. Paying this impacts an investor’s profits and affects their ability to reinvest with the community. With a 1031 real estate exchange, an individual can defer the capital gains tax by investing their earnings into a new property.
However, these exchanges have strict rules and timelines, and failing to adhere to them negates the transaction. Partnering with an experienced qualified intermediary is the best approach to ensuring a seamless process. The 1031 Exchange Intermediaries team has over three decades of experience and leverages that knowledge to help our clients eliminate paying taxes on the sale of their relinquished property.
Keep More of Your Profits With Our 1031 Exchange Services
The 1031 Exchange Intermediaries team leverages our three decades of experience to help you maximize your return on investment with a 1031 real estate exchange. Contact us today to schedule your free consultation and start building your strategy.
Our 1031 Real Estate Exchange Services
In order to qualify for tax deferral, an exchange must be in place prior to the closing on the sale or purchase of any real estate intended as part of the exchange. Unfortunately, some taxpayers mistakenly believe that simply placing the proceeds from a sale in escrow is adequate or compliant. Without an agreement setting forth the intent to receive a replacement property, the taxpayer will be treated as having received the proceeds notwithstanding the deposit of the proceeds into an escrow account.
Link to: Simultaneous
Simultaneous Exchanges
In this example, both the relinquished and replacement property titles are transferred at the same time. While it is true that there must be an exchange, there is no requirement that the transfers must occur at the same time.
Link to: Deferred
Deferred Exchanges
This is the most common type of exchange. In a deferred or forward exchange, the replacement property must be identified within 45 days from the transfer of the relinquished property and acquired within 180 days after that day or the due date (with extensions) of the taxpayer’s federal income tax return for the year in which the relinquished property was transferred. Both the 45-day and 180-day time periods begin on the date the relinquished property is transferred.
Link to: Improvement
Improvement Exchanges
In some cases a taxpayer will want to make improvements to the replacement property and have the cost of those improvements included in the exchange value of the replacement property. These types of improvement exchanges are allowed, subject to meeting certain conditions. If you are considering an exchange with improvements it is important to discuss the proposed project with us to make sure the correct exchange structure is in place prior to starting the project.
Link to: Reverse
Reverse Exchanges
Reverse exchanges are available tool which allow a taxpayer the ability to complete an exchange when the closing of the replacement property purchase will occur prior to the sale of the relinquished property(ies). The IRS acknowledged this as an acceptable method of completing an exchange and created a “safe harbor” for doing so when they issued Rev. Proc. 2000-37. The structure used for a reverse exchange is different than the one used in a traditional forward exchange. If you think a reverse exchange may be the right strategy for you, contact us and we will provide additional details about setting up a reverse exchange.
Let’s Talk About Your 1031 Real Estate Exchange
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