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. Using our service will allow you to use more of your equity to acquire the property you desire by deferring capital gains tax.
Our staff offers free consulting, by phone or in person, to help you understand your specific Exchange scenario. All exchanges are structured to meet the requirements of your individual situation.
Professional Coordination
We serve as the Qualified Intermediary and work closely with you to assure that your transactions go smoothly. We keep your team of professionals informed, including your Real Estate Agent, Attorney, Lender, and Accountant.
Document Preparation
We prepare all of 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 will help you select the best service for your particular situation, including Deferred, Improvement, Reverse, and Multi-Asset Exchanges. We pride ourselves in educating our customers and we take the time to explain complications that may arise to ensure you understand the process, deadlines, documents, and responsibilities.
