§ 1031 Exchange & Your Equity

Exchanges Allow You to Delay Capital Gains Taxes freeing more Equity
Capital gains taxes are deferred if all of the exchange funds are used to purchase like-kind investment property, almost like getting an interest-free loan on the tax money you would have paid for a cash sale. This alows more equity to be retained and helps you move into to higher valued assests each time an exchange is performed.

You can exchange a single property for multiple properties, or purchase one property from the proceeds of several. Proceeds not used to purchase new investment property will be subject to capital gains taxation.

To see the potential of your exchange please review the following before you make the exchange (Phase I):

• Use our Capital Gains Calculator for an idea of the total potential your exchange may have
• Call or email us for your free consultation, we are here to answer your questions and provide you all the information at no charge - even if you do not use us for your exchange
• Complete the Purchase & Sale Agreement your advisor has provided (after your initial contact with us)
• Setup your Escrow with the Closing Agent/Company
• Inform your Advisor who the Closing Agent is and what date they have esitmated for your close
• Please remember that all of these steps and a few more MUST be done before the 45 day deadline

Once you have completed and understand the above steps (Phase I) we are ready to discuss what happens at Day 45 (Phase II):

• We will contact the Closing Agent and get detailed information that we need regarding your Relinquished Property and the Buyer
• The Closing Agent will then Wire Transfer all proceeds of the sale to our Escrow Account
• Before the end of the 45 Day deadline, you must identify a Replacement Property
• Fill out and sign the Purchase & Sale Agreement portion regarding the Replacement Property
• Define the Closing Agent and the estimated Closing Date provided
• We will deal with the Closing Agent and gather the needed information about the Seller and the Property
• If you are looking for a Complex Exchange to occur, the details would differ here for each type
  • example: For a Parking Lot Exchange - WE purchase the Replacement Property for you until the sale of your Relinquished Property can occur, thus making it your property with us as the retainer until you can perform your exchange fully
  • example: For a Reverse Exchange - the steps would be opposite, the Replacement property has occured in place of the Relinquished Property sale and the proceeds have been "borrowed" upon for the purchase of the Replacement Property
• All documents and proceeds (if any) are turned over to you for storage and keeping (you will need them for future tax information and asset verification)