§1031 Exchange

A §1031 Exchange is a tax-deferred exchange of real property. The exchange of real property allows for the deferral of capital gains tax. An exchange is available for the transfer of real property held for investment or business purposes. Personal residences do not qualify for an exchange.

Without an exchange, a direct sale of property requires the payment of capital gains tax. This then reduces the amount of money available for investment in a future property. An exchange can defer the payment of the capital gains tax.

Timing

The crucial element of an exchange is the timing. An accommodator must be designated and the exchange setup prior to the disposition of the property. From the sale of the property, the exchangor has 45 days to identify replacement property, and 180 days to acquire what is identified.

Our Role

In a typical exchange, the accommodator will acquire your real property and sell it to the purchaser, they then will use the proceeds from the first sale to acquire new real property. This property will be selected by you in accordance with the appropriate laws and regulations. The new property will then be transferred to you, within the 180 day time frame.

Experience

Our staff, collectively, have over 30 years of professional experience in structuring and implementing tax deferred exchanges.