Full-service Qualified Intermediary for IRS Section 1031 Exchanges
Land Exchange serving Southern Utah for over 20 years and successfully completed thousands of 1031 exchanges.Call Us Today: (435) 634-4050
Discover the Best Tax Strategy for Real Estate Investment
A 1031 Exchange or a Reverse Exchange are two of the most powerful tax deferral strategies remaining available for taxpayers.
Thanks to IRC Section 1031, a properly structured 1031 exchange allows an investor to sell a property, to reinvest the proceeds in a new property and to defer all capital gain taxes.
A sale and a reinvestment in a replacement property are converted into an exchange by means of an exchange agreement and the services of a qualified intermediary-such as Land Exchange Corporation-to ensure that the exchange is structured properly.
To start the process of a 1031 Exchange or Reverse Exchange, call us today!
Let us guide you through the process of a 1031 exchange.
Allow us to make your experience rewarding and educational. We will help you take advantage of the opportunities available to you as our customer.
An Estate-Building Technique
The advantage of a 1031 exchange is the ability of a taxpayer to sell income, investment or business property and replace with like-kind replacement property without having to pay federal income taxes on the transaction.
- Exchanging is a creative method for marketing property.
- A 1031 exchange allows for consolidation of investments by exchanging several properties for one equal to their combined value.
- Exchanging allows for increased allowable depreciation recovery with acquiring property with a better than land-to-building ratio, a shorter useful life, etc.
- Exchanging is an estate-building technique since, under current law, this tax liability is forgiven upon the death of the taxpayer, which means that the taxpayer's estate never has to repay the IRS.
Before deciding whether or not to engage in an exchange, you should carefully analyze all of your options. Land Exchange Corporation is ready to help.
Requirements of 1031 Exchange
Let our Land Exchange experts aid in the exchange process to help with qualifications, time frame requirements and exchanging funds for a 1031 exchange.
- Qualified Property: most all property, both real and personal, can qualify for tax deferred treatment.
- Property Purpose: both relinquished property and the replacement property must be held for productive use in a trade or business or for investment.
- Holding Period: this fact or circumstance is to be considered in determining whether the Purpose Requirement has been met.
- Like-kind Property: "Like-kind" means "similar in nature or character, notwithstanding differences in grade or quality."
- Exchanged vs. Cash: the property must be exchanged for another property and not sold for cash.
- Time Limits: The taxpayer is required to identify the replacement property within a certain time limit after the transfer of the relinquished property and must close on replacement property before a certain time.
- Related Party: the rules including selling and acquiring to related and unrelated parties.
- New Construction: rules dictate a time frame.
As a Qualified Intermediary, Land Exchange Corporation offers experience, exceptional personal customer service and expert credentials. Let us help you acquire the benefits you deserve on your investment.