Also referred to as a Forward Exchange, a Delayed Exchange involves the sale of one or more pieces of property, the proceeds of which are held by a Qualified Intermediary, and the Seller identifies one or more replacement property(ies) within 45 days and completes the purchase of the replacement property(ies) within 180 days after the initial sale. As long as the requirements are met, the client may defer income taxes on the gain from the sale of the property. Gain is computed as follows: Sale price less Original purchase price reduced by Depreciation taken. The client must acquire one or more properties whose combined purchase prices are equal to or more than the sales price of the property sold.
A Section 1031 Exchange is one of the oldest methods to reduce or eliminate current taxes in the year of sale. If you are willing and able to purchase similar assets as were sold, then you are well on your way to eliminating income taxes on the gain from the sale of assets. However, like all areas of tax law, there are lots of confusing rules which must be sorted through to avoid being taxed on the Exchange. Countless numbers of experienced lawyers and accountants make inadvertent mistakes every year which cost their clients dearly. So when it comes to 1031 Exchanges, count on our tax guarantee!
When we handle your 1031 Exchange, count on the following:
Be assured that we will take the time to discuss all available exchange and tax deferral options, and whether or not a 1031 Exchange is a right fit for you. We do not charge for our Exchange Consultations. If you are willing to acquire assets that are similar to what you sold, then you are on the right track to a 1031 Exchange.
Call at 1-800-427-7212 and let our Exchange coordinators discuss your potential 1031 Exchange. If you have your sale and/or purchase information handy, we can sketch out possible exchange options for you.