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Strategic Property
Exchanges, LLC
11353 Reed Hartman Hwy.
Suite 300
Cincinnati, OH 45241
Toll Free: (800) 427-7212
Phone: (513) 412-3481
Fax: (513) 412-3482
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What is involved in managing your 1031 Exchange?
As lawyers and board certified Tax Specialists we are well equipped to coordinate all of the following issues and work with all the members of your team. Our 1031 asset manager software links all the members of your team and all the transactions details into one integrated and secure web portal. - Real estate issues, including contract law in the purchase and sale of real estate, zoning, easements, rights of possession, title and ownership
- Uniform Commercial Code issues, including the purchase and sale with transactions involving personal property (movable property), not real property (immovable property)
- Intellectual Property issues, including certain legal property rights over creations of the mind, both artistic and commercial, assets, such as musical, literary, and artistic works; ideas, discoveries and inventions; and words, phrases, symbols, and designs. Common types of intellectual property include copyrights, trademarks, patents, industrial design rights and trade secrets.
- Environmental Issues including air quality, water quality, hazardous chemicals, waste management, remediation of contaminated land and brownfields, sustainable development, and impact review
- Tax Issues including the analysis of the goals of the client in relation to federal laws and Section 1031 in particular. This includes the basic rules discuss throughout this website, such as taxation of excess debt, failure to qualify the transaction; plus related issues, such as partnership tax law, corporate tax law, depreciation rules and gift and estate tax law
- Financial Issues including analysis of replacement property, loan selection, risks involved in acquiring certain properties
- Safety and Security Issues including the safety and security of the gross proceeds received by the QI from the sale of the relinquished property, protection from penalties and taxes from the IRS as well as errors committed by your QI or other advisors
- Qualified Intermediary issues regarding the technical qualification and expertise of Qualified Intermediaries as well as their guarantee of their work product
- Monitoring your Exchange on a day by day basis as changes are analyzed and integrated to assure that no errors are made and nothing falls through the cracks
Who can manage your 1031 exchange of property?
A Qualified Intermediary is required to be involved in every 1031 exchange.
Who cannot service as Qualified Intermediary?
· your attorney
· your accountant
· your banker
· your real estate agent
· your employee
· your relatives
What is the minimum should you expect from your Qualified Intermediary?
1. Under federal tax law an individual or entity is required to serve as the accommodator of the 1031 exchange.
2. The QI will establish a bank account to receive the proceeds from the property you sell in the exchange as well as rents or other income generated in the course of the 1031 exchange.
3. The QI will receive your identification of the replacement property (ies) on or before the 45th day after the closing.
4. The QI will use the proceeds to acquire the replacement property you identify and transfer the title to your name.
What additional duties does Strategic Property Exchanges LLC perform?
We recognize that our clients are busy with their own businesses and lack in depth expertise in the area of Section 1031 Exchanges, so we take full responsibility coordinating for details and tax impact of each and every 1031 exchange. - We act as Timekeeper, proactively guiding and advising clients stay within the statutory time limits;
- In our 1031 Asset Manager Program and our LKE Program:
- We handle all the details so our clients can stay focused on their business
- Exchange Expertise: Client downloads 1031 Asset Manager Planned Purchases & Sales into database. We assist in determining whether these assets can be exchanged, how to tailor the transaction for maximum tax deferral and determine the best type of exchange to meet client goals
- Transaction Processing: Load client-provided data into our LKEM Software, generate like-kind exchange matches and safeguard client data
- Reporting: Produce and deliver tax customized management reports, tax filing reports and system management reports as requested by clients and within the capabilities of the LKEM Software and normal scope of the LKEM Services
- Related Support/Consulting: Set-up, training, technical support, consulting and other services related to the LKEM Services as the client and SPE may agree upon from time to time which might include, without limitation, supporting client questions regarding the LKEM Software’s capabilities
- We act as a Guide, advising clients and their advisors, as to the proper tax structure and types of 1031 Exchange and we stand behind all of our advice with our legal malpractice insurance;
- We act as Guarantor, backing up our work product with our unconditional guarantee.
- We act as Guardian, safeguarding the client’s assets during the exchange, taking every available precaution available in the market today;
- We act as Tax Advisor, preparing tax forms 8824 and 4797 as well as computing depreciation expense for our 1031 Asset Manager and LKE clients.
- We act as Teacher, providing educational seminars to the general public;
- We act as Advisor, providing an estimated 10,000 monthly newsletters to keep our clients and friends updated as to changes in the law; and
- We act as Innovator, providing new tools and methods to better utilize existing business assets, investing in new assets, conserving cash flow and reducing income taxes.
What can you do to assure yourself that your QI is reputable? - Size is no guarantee of safety. Many of the recent scandals involving hundreds of millions of dollars of losses were the result of defalcations by some of the Largest Qualified Intermediaries, Banks, Title Companies and Tenancy in Common Sponsors. Obtain references from trusted sources.
- Obtain a banking reference to determine that your account is a separate account from any other account.
- Verify that the QI is bonded or insured and obtain a copy of the certificate of coverage.
- Determine if your QI is a member of FEA and has agreed to abide by their Code of Ethics.
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