§1031 TAX DEFERRED EXCHANGES
§1031 Tax Deferred Exchanges – It is possible to sell a property and purchase another without incurring any federal income taxes on the sale. Saving on capital gains tax puts you, as an investor, on the road to wealth. That is why a §1031 Exchange is so important: Without it, you will pay taxes every time you move from one investment property to another. Vacation homes and resort properties may qualify for this special tax treatment, thus deferring tax liability.
Joan and Paul have had personal experience with §1031 Exchanges and have been trained to recognize and evaluate situations in which a tax-deferred exchange could save you, the real estate investor, substantial tax dollars. They can assist you and your team with structuring your transaction.
Four basic rules apply. To be eligible, your property must be held for investment or productive use in trade or business. The property must be exchanged for like kind property. The replacement properties must be identified within 45 days of the transfer of the relinquished property. The exchange must be completed within 180 days of the transfer of the relinquished property or the tax due date, whichever is first.
To use a calculator to help determine when the 45 day identification or the 180 day exchange period end,
45/180 Day Calculator
To contact national §1031 exchange intermediaries,
Starker Services, Inc. – Starker Services is the oldest and largest independent §1031 exchange intermediary in the United States.
Investment Property Exchange Services, Inc. – IPX 1031, a subsidiary of Lender Processing Services, Inc., is the largest §1031 exchange facilitator in the United States.