Tax deferred exchanges have been a part of the Internal Revenue Code for almost 100 years. Not surprisingly, the volume of IRC Section 1031 exchanges has grown exponentially since the concept of allowing a 180 day exchange period was approved in 1984.
Read on to see how you can benefit from selling one highly appreciated investment property and replacing it with one or more properties anywhere in the country.
A 1031 exchange essentially allows you to move your property's cost basis from one qualifying property to another while deferring your capital gain taxes. This means that your reasons for exchanging can be as numerous as the properties that are available to you.
Deferral of capital gain and depreciation recapture taxes
Exchanging for better circumstances or better properties
Exchanging for multiple properties and diversification
The Internal Revenue Service allows you to sell an investment property and replace it with another within 180 days with a 1031 exchange. By exchanging and not selling and repurchasing, you can defer the payment of state and federal capital gain taxes which can amount to almost 40 percent, depending upon where you are located.
Always plan your exchange first to streamline the process.
Select the Intermediary to hold your funds during the exchange.
Execute your exchange documents and close on the sale of your Relinquished Property.
ID New Property
Within 45 days identify your candidate Replacement Properties.
Acquire Replacement Property within 180 days and report the exchange on your tax return.
We've partnered with Fyntex, one of the industry's leading 1031 exchange facilitators. Their advisory services and processing platform provide investment property owners with a premium white glove experience.
Often, time is of the essence in getting your exchange started. Fyntex can take your exchange from planning to documents in minutes, not days.
Your Exchanger experience is improved with 24/7 access to your encrypted documents, 1031 funds status and activity, and secure communications.
Fyntex uses restricted trust accounts in the Exchanger's name and with their tax ID number. This means funds will never move without your authorization.
Fyntex has the most secure 1031 processing platform in the industry. There is no other platform more efficient or more secure.
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