1031 EXCHANGE

What is an Exchange?

A Tax-Deferred Exchange is a method by which a taxpayer trades property, held for investment or business purposes, for replacement property resulting in a deferral of tax on the transaction. When you sell a business or investment property and you have a gain, you generally have to pay tax on that gain. This capital gains tax varies depending upon your particular situation.

1031 Exchanges are often referred to as “tax-free exchanges” as the transaction itself is not taxed. Section 1031 of the Internal Revenue Code provides an exemption from current recognition of realized gain, providing that the requirements of the IRC are carefully met. Your participation in a 1031 Exchange may allow you to use more of your equity to acquire the property you desire by deferring capital gains tax.

Services:

No-Cost Consulting

Our staff offers free consulting, by phone or in person, to help us understand the specifics of your exchange. All exchanges can be structured to meet the requirements of your individual situation.

Professional Coordination

We serve as the Qualified Intermediary and work closely with you and your formal tax and legal advisors to ensure that your transactions go smoothly. We keep your team of professionals informed, including your Real Estate Agent, Attorney, Lender, and Accountant, as needed during the exchange.

Document Preparation

We prepare the necessary documents to facilitate a successful exchange. We are able to provide rush documentation if necessary.

Accounting

At the conclusion of your Exchange, we prepare a final accounting statement that summarizes all of the transactions involved in your Exchange. This is a vital tool for your accountant in preparing your tax return. 

Education and Explanation

We are experienced in all types of exchange transactions and can help you select the best service for your particular situation, including Deferred, Improvement, Reverse, and Multi-Asset Exchanges. We pride ourselves in helping our customers become more educated about the process and can address complications that may arise to ensure you have a clear understanding of the process, deadlines, documents, and responsibilities associated with an exchange.