NATIONWIDE
1031, LLC
NATIONWIDE
1031, LLC
What
is a 1031 Exchange?
In
the summer of 1990, the I.R.S. finally came out with the long awaited rules on
Deferred Exchanges. Section 1.1031
These
new rules allowed owners of certain types of like kind Real and Personal
property to sell their property and buy other like kind property without
paying the Capital Gains Tax.
The
like kind provision for Real property is quite broad, and includes Land, Rental,
and Business property. Any of which, can be exchanged for the other. The like
kind provision for Personal property is more restrictive.
As
an example a business aircraft for a business aircraft (a fixed wing airplane
for a helicopter will work), or a commercial truck for a commercial truck, etc.
The
rule also required that the "Exchanger" use a safe harbor to hold the
proceeds while the exchange was in progress, and spelled out what those safe
harbors were.
The
only practical safe harbor for most "Exchangers" is a "Qualified
Intermediary."
Nationwide 1031, LLC is a "Qualified Intermediary"
Section
1.1031 says that you cannot use a person that you know, or have done business
with within the last two years as your Qualified Intermediary.
With a 1031 exchange, you will be able to re-invest the monies that would have gone to Capital Gains Taxes, saving you thousands !
Within
a 1031 exchange, once you have sold your property or properties, you will then
have 45 days to identify what you will be purchasing with your tax-free
proceeds.
National 1031, LLC administers all types of 1031 exchange transactions in all 50 states.
You
can identify as many properties as you like, and you do not have to buy all of
them, but you do have 180 days to close on them.
Nationwide 1031, LLC not only acts as your Qualified Intermediary, but we also make sure all of these deadlines are met, taking the weight off your shoulders and allowing your exchange to run smoothly.
Schedule of Fees
Straight forward Exchange One Relinquished property and one Replacement property. $520.00 due at each closing. Each additional property added to the exchange is half price.
Construction Exchange Involves using the untaxed proceeds in the exchange to renovate or repair the Replacement property. Each repair or renovation must be identified separately, including the costs of labor. $1200.00 at each closing.
Reverse Exchange This is a much more complicated exchange. This type of exchange requires us to actually purchase the Replacement Property, and hold title to it until the Relinquished Property can be sold. $2800.00 at each closing
Please note that these fees are part of the closing costs listed on the Settlement Statement or HUD-1.
For additional information or to get started on you 1031 Exchange application contact:
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