Delayed Forward 1031 Exchanges
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. Unlike a simultaneous exchange where the relinquished property and replacement property must close at the same time a delayed exchange gives exchangers 45 days from the time, they sell their relinquished property to identify a replacement and up to 180 days from the time they sold their relinquished property to close on their replacement property. If 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 the original purchase price and improvements 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.
Why would I need a Delayed Exchange?
Section 1031 Exchange is one of the oldest methods to reduce or eliminate current taxes. 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.
1) Straight Forward
2) Additional Timeframe
3) Expanded Property Options
Things to Know
When we handle your 1031 Exchange, count on the following:
Always consult a tax advisor to ensure the proper plan for you.
1. Your proceeds are safeguarded in a secure bank account.
2. We return all calls and emails promptly.
3. We make sure all your questions are answered no matter how much time is involved. Your proceeds are safeguarded in a secure bank account.
Is This Exchange Right for Me?
Be assured that we will take the time to discuss all available exchange and tax deferral options whether or not a 1031 Exchange is a right fit for you should ultimately be decided by your tax advisor.