1031 Exchange Services
We are a Qualified Intermediary (QI) and 1031 exchange advisors. A 1031 can be a complex transaction, and if it is not executed properly, you could be responsible for tens or even hundreds of thousands of dollars in taxes owed to the IRS. Our 1031 exchange services help you defer, or in some cases even eliminate, the taxes owed on capital gains from a real estate sale. In a typical transaction, the property owner is taxed on any gain realized from the sale, even if you are planning to invest those gains. Sellers who plan to reinvest proceeds should reinvest that money in real estate in order to benefit from all the proceeds. When you work with a QI, we receive and disburse the funds earned on your relinquished property until you purchase the replacement property, a requirement by the IRS to get the tax deferment. Here’s how a basic exchange goes:
So what is our role in a typical exchange?
- Provide a free consultation to ensure you and (any advisor) do the right type of exchange for your circumstances, understand any important steps before closing on your relinquished property
- Provide instructions and the appropriate documents to the escrow or title company concerning the exchange to be signed at the closing of your relinquished property
- Hold your exchange proceeds in a FDIC-insured, and segregated bank account while you search for and ID suitable replacement property
- Our replacement property assistance program is offered to those who need it
- You’ll identify replacement property in writing during your 45 day period
- Within your 180 period, we coordinate with your title company and transfer funds on the close of your replacement property
- Exchange funds can only be released to a bonafide real estate closing and with the exchanger’s signed release