THE 1031 EXCHANGE: THE LAST GREAT WEALTH BUILDING TOOL

Every year approximately 300,000 taxpayers make use of Internal Revenue Code Section 1031 to defer the payment of capital gain and depreciation recapture taxes on the sale of their investment or income property.

BENEFITS OF 1031 EXCHANGING

Not only does 1031 exchanging dramatically increase your buying power because you are saving so much which might have been lost to taxes, there are many other benefits as well.

Defer Depreciation Recapture Taxes

In a normal sale, depreciation is owed and calculated at a rate of twenty-five percent. Thos savings plus the deferral of gain can add up quickly.

Exchange for Better Circumstances

A 1031 exchange will allow you to relinquish an under performing property and acquire new replacement property which is better suited to generating an improve financial return to the Exchanger/Seller.

Tax Free Portfolio Diversification

Exchanging allows the transfer of an appreciated asset and the subsequent acquisition of several replacement properties which can serve to improve an investor's overall loan to value ratio while also reducing risk.

Transition into Management Free Properties

Many long term investment property owners utilize the 1031 exchange to transition from a property which require significant management responsibility to a property or portfolio of properties which are professionally managed and which generate cash flow which is paid monthly. Tax deferred mailbox money indeed!

Pass Legacy Equity Along via a Living Trust

If you have a living trust together with a legacy portfolio of appreciated properties with lots of capital gain or trapped equity, you can pass those assets to your heirs with a fully stepped up basis at date of death.

TYPES OF 1031 EXCHANGES

DEFERRED EXCHANGE

Generally, when one discusses exchanges, the type of exchange referred to is the delayed, deferred exchange. In a delayed exchange, the Relinquished Property is sold at Time 1, and after a delay of up to 180 days, the Replacement Property is acquired at Time 2.

REVERSE EXCHANGE

The reverse exchange represents an exchange in which the Exchanger needs to buy the Replacement Property before he can sell the Relinquished Property. This usually requires a loan from the Exchanger as the new property is held in an LLC until the old property is sold.

IMPROVEMENT EXCHANGE

Sometimes, the Replacement Property requires new improvements to make it viable for the specific purpose the Exchanger has intended for the property. Such construction can be completed while the property is held in a separate LLC in much the same way as in a reverse.

1031 EXCHANGE RESOURCES

1031 GUIDE

Here is a comprehensive tutorial which explains every aspects of a 1031 exchange.

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KEYS TO 1031 EXCHANGING

This tutorial breaks down the key items which experienced Exchangers always follow.

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1031 EXCHANGE FAQ

Have a quick 1031 exchange oriented question? You'll likely find your answer here.

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OUR 1031 PROCESSING PARTNER

The IRS requires that you utilizie the services of a Qualified intermediary to assist in the coordination and execution of your 1031 exchange. We've partnered with Fyntex, one of the nation's leading 1031 exchange processors who provide the most secure and seamless experience for Exchangers.

THE FYNTEX ADVANTAGE

Fyntex routinely provides 1031 exchange processing services through their partner network of banks, settlement companies and securities broker-dealers. The benefits of their value proposition, listed here, are unique in the 1031 exchange industry.

  • Unsurpassed Expertise and Experience
  • 40,000 Exchanges Completed
  • Secure Exchanger Portal
  • 24/7 Visibility of Funds and Documents
  • Secure Messaging System
  • Online Identification Wizard

1031 Oriented Multimedia

EQUITY AND CAPITAL GAIN
LIKE KIND PROPERTIES
DEFERRED EXCHANGES
REVERSE EXCHANGES
IMPROVEMENT EXCHANGES
PROPERTY IDENTIFICATION

EASY 1031 EXCHANGE MATH

It is important to understand how the math associated with a 1031 exchange can impact your ownership. A completed 1031 exchange not only defers capital gain and depreciation recapture taxes, it also dramatically increases your buying power as well.

HOW MUCH PROPERTY SHOULD YOU BUY?

When considering a Replacement Property you need to know how much property value to acquire to successfully defer your capital gain and depreciation recapture taxes. To assist you, this nearby wizard will help you determine your ideal net purchase price, cash downpayment and the amount of debt you'll need to have a totally tax deferred transaction.