On selling interest in investment property, you may incur some federal capital gain taxes or state taxes as well. A tax deferred exchange under section 1031 of the internal revenue code will be suggested by your attorney, tax advisor and professionals from the real estate market. This tax deferred exchange will help you to dispose of investment properties and acquire “like kind” properties along with deferring of federal capital gain taxes and recapturing depreciation. A large number of states with capital gain taxes offer similar kind of advantage.
So, in short, we can say that a tax deferred exchange will allow you to save the taxes by reinvesting sale proceeds.
Why you must choose Assure America Title Insurance Company?
- We have qualified intermediary who will handle your exchange funds with utmost care. We offer nationwide service in facilitating tax-deferred exchanges.
- We promise that we deposit your exchange funds in FDIC insured institutions having investment grade ratings.
- Our multi-dollar billion fidelity bond and professional liability insurance are maintained by leading insurance writer.
- We have attorneys and certified exchange specialists.
What are the requirements of deferring capital gains tax under the section 1031?
- The disposed and received property must be of productive use in a trade, business or for investment.
- The disposed and received property must be of “like kind”. This “like kind” requirement is different for a personal and real property. There must be an exchange as distinguished from a purchase and sale.
The 4 methods of 1031 Exchanging:
1. Simultaneous Exchange
2. Delayed Exchange
3. Reverse Exchange
4. Construction/ Improvement Exchange
What do we offer?
- Online ordering facility 24 hours a day
- Knowledgeable and experienced staff members to handle your transactions
- Multi-language brochures and bilingual staff
The 3 steps to delayed 1031 exchange are:
The sale of a relinquished property: before this, exchanges must have a qualified intermediary to facilitate 1031 exchange.
Identification of replacement property: an exchanger must identify this property within 45 days after the close of the relinquished property. The identification must include signed written notice by the exchanger.
Purchase of replacement property: within 180 days, an exchanger must acquire the “like kind” replacement property.
If you want further information you can call us directly. Our professionals will provide you free consultation in this matter.