1031 exchange:
Simple Steps Defer Capital Gains Tax Help Information

1.) Fax sales contract and name and phone # of your closer to us at 303-715-1012 OR Click here to ORDER ONLINE.

2.) We then draft an exchange agreement for you to sign. (This exchange agreement is required by the IRS.) You return the signed exchange contract to us, and we review the settlement statement with your closer.

3.) We secure the sales proceeds in a restricted account. You have 45 days to identify replacement property(ies) using a form that we provide. You have 180 days to close on that property(ies).

4.) You fax the purchase contract and name and phone # of your closer to us at 303-715-1012. Your closer sends us the settlement statement, and we wire your money to your closing of the replacement property(ies). If there are any remaining funds, a check is made out to you and taxes may be due on this amount for that taxable year.

Qualification

You must want to relinquish investment property and to replace it with other like-kind investment property. Generally, investment real property is exchangeable with any other investment real property regardless of use. You must acquire replacement property within 180 days. By using us as a "Qualified Intermediary" you carry forward the tax basis from the relinquished property. The gain is recognized in the future when replacement property is sold without a 1031 exchange. In order to fully defer capital gains tax, you must exchange equal or up in value and equity.

FAQs

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