What is a 1031 Exchange?
Under section 1031 of the United States IRS code, a taxpayer may defer recognition of capital gains and related federal income tax liability on the exchange of certain types of property
1031 Exchange
Advantages of a 1031 Exchange
Preservation of equity
Maximize return on property
Increased cash flow from larger properties
1031 Exchange Timeline
Day 1: Sell your existing property. The clock starts ticking the day that escrow closes. Start identifying replacement properties.
Day 45: Solidify replacement properties.
Day 180: Complete the purchase of your new properties.
What is a 1031 Custodian?
A 1031 Custodian plays a pivotal role in the 1031 Exchange process.
Your 1031 Custodian will be deeply involved in every step of the process from assisting in completing the paperwork to ensure a compliant exchange to holding funds in escrow from the sale of relinquished assets.
Selecting the right 1031 Custodian is essential to a smooth exchange.