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1031 Exchange Services

Professional 1031 exchange services are essential for navigating the complexities of property exchanges without paying capital gains taxes. If you’re uncertain about how to start and successfully complete an exchange, you’ve come to the right place. At 1031 Pros, we offer comprehensive services for every type of 1031 exchanges, all under one roof.

Overview of 1031 Exchange Services

 

At 1031 Pros, we handle exchanges in all 50 states of the union, ranging from standard to complex exchanges. We serve as a Qualified Intermediary for each exchange, facilitating exchange-related funds and all documentation to ensure compliance with IRS regulations, helping you to preserve equity and be able to invest proceeds from the sale of one property into another, without paying capital gains taxes.

 

Role of Qualified Intermediaries

We have deep expertise in 1031 exchanges of all types. We specialize in setting up special purpose entities that protect the funds in your exchange, coordinating between parties, ensuring compliance with all IRS rules and even handling vendor payments in new construction exchanges. We also help you meet the 45 day deadline for identifying your replacement property and the 180 day timeline for the entire exchange. 

 

Selecting the Right 1031 Exchange Service

You want your 1031 exchange service provider to be licensed and accredited, have positive reviews and testimonials, and bring a strong reputation for stability and customer service to your exchange. At 1031 Pros, we are ready to help you successfully complete your exchange. Contact us at 916-252-6900 with any questions or to get started. 

 

Types of 1031 Exchanges Supported

We offer services for all types of exchanges, and offer a free consultation to determine which type of exchange is right for you. 

 

Simultaneous and Delayed Like-Kind Exchange Services

You can defer capital gains tax payments when you sell an investment property and acquire one of “like-kind,” so long as the new property is also used for business or investment purposes, the exchange is completed within 180 days, and it meets IRS requirements. We guide you through the often-complex process of transactions, including simultaneous exchanges – where you trade a relinquished property for a replacement property at the same time, and delayed exchanges – where you sell your relinquished property first, then hold the funds while you find the right replacement property. These exchanges can include every kind of property from raw land to vacation homes, and even foreign properties.

 

Reverse Exchange Services

We also handle exchanges where you acquire the replacement property first, in advance of selling the relinquished property. 

 

Partial Exchange Services

A partial exchange is where you purchase property lower in value than your original property, or take part of the cash from the sale’s closing and invest only part of it toward a 1031 exchange. These transactions qualify for a partial deferral of capital gains taxes.

 

New Construction or Improvement Exchange Services

Also called Build-to-Suit or improvement exchanges, these let you use the proceeds from the sale of a relinquished property for new construction, improvements, and renovations on a like-kind property. If the value of the replacement property is less than the one you sell, improvements can increase the value enough to meet the requirements for full deferral of capital gains taxes. 

 

Security Measures for Protecting Investments

At 1031 Pros, we set up segregated, unique, FDIC-insured individual accounts for each exchange. 

 

Legal and Regulatory Compliance

We implement strict internal controls to ensure full compliance with state and federal regulations, including recent updates to laws affecting 1031 exchanges. At the close of your exchange, we also provide you with all necessary tax documents so you can benefit from a fully deferred tax exchange.  

 

Comprehensive Exchange Services Offerings

 

As expert 1031 advisors, we offer full and complete service for your exchange, no matter what type you undertake. This includes ongoing compliance checks, tax advice, access to a network of property management and real estate experts, and much more. We even work with you to create a long-term real estate investment strategy, to be sure that you are maximizing your investments and building a strong portfolio. Got questions? We’re ready to talk. Contact us at 916-252-6900. 

FAQs

 

What are 1031 exchange services and how can they benefit me?

Unlike traditional real estate transactions, where you sell one business or investment property and buy another – and pay heavy capital gains taxes along the way – 1031 exchanges let you defer capital gains taxes. When choosing what types of properties to include in your real estate portfolio, working with a Qualified Intermediary to ensure compliance with tax regulations and set a long-term investment strategy will help you grow your portfolio faster.   

 

Are there different types of 1031 exchange services?

There are, based on when you sell your relinquished property and acquire a replacement property. We handle all types of exchanges, including in-kind, reverse, partial, and new construction exchanges. 

 

How do I choose the right service provider for a 1031 exchange?

You want a Qualified Intermediary with extensive experience handling all types of 1031 exchanges, who is up on the latest regulations, who has a good reputation, and provides excellent and quick customer service. At 1031 Pros, we check all of these boxes and more.

What are the common mistakes in 1031 exchanges and how can they be avoided?

The biggest mistake is meeting deadlines: the 45 day timeline for identifying a replacement property and the 180 day timeline for completing the exchange. If you miss these deadlines, you are responsible for paying capital gains taxes on the sale of your relinquished property. Another mistake is not being in compliance with IRS regulations. At 1031 Pros, we will help you navigate the complexities of exchanges successfully. 

 

How long does a 1031 exchange take from start to finish?

This depends on the type of exchange. If you have already identified (or even acquired) a replacement property, then the process is quicker than if you are looking for a replacement property or undertaking construction or improvements on the new property. Call us at 916-252-6900 for a free consultation and, depending on the needs of your exchange, we will be able to advise you on what timeline to expect.

 

How much does a 1031 exchange cost?

Our 1031 exchange solutions are priced competitively with those of other 1031 exchange service providers, and we will match the price quote you receive from any other services – while bringing our world class, responsive customer service to your exchange. 

 

Can 1031 exchange services help with property outside the U.S.?

We can handle 1031 exchanges of foreign property with like-kind property both at home or abroad. Call us at 916-252-6900 to learn more.

 

What should I prepare before contacting a 1031 exchange service provider?
If you have already acquired your replacement property, then you should come to the conversation with details on the new property. If you are undertaking new construction or improvements on a replacement property, then you should bring information on the property, planned improvements, and the details of any related construction loans. If your exchange is like-kind or partial, then you should bring information on the properties. Give us a call

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