About our 1031 Exchange Services
Dating back as early as 1912, the Internal Revenue Service set up a code section now known as a1031 tax free exchange. Over the years it has evolved into an essential tool for investors. This section allows for the tax-differed exchange of real or personal property. An investor can buy a "like" property, for the same or greater amount, and defer capital gains taxes on that transaction. A like property is described as a property similar in distinction; in other words, recreational for recreational or commercial for commercial. An investor can defer taxes with this type of exchange for as long as he or she wishes or until they die.
There are three steps to execute a successful 1031 Exchange.
- Declare your intent to execute a1031 Exchangebefore the sale of your property. Evans & Associates has the staff and the experience to handle this process for you. At closing your proceeds will be held by an intermediary until the purchase of your replacement property.
- Starting the day of your closing you will have 45 days to identify 3 replacement properties. These properties must qualify as like properties according to the IRS, and as your broker, Evans & Associates will make sure that you stay with in the1031 exchange requirements.
- Within 180 days of your closing you must execute the purchase of one (1) of the identified properties. The intermediary will pay the closing cost, from the proceeds of your sale, and you will receive Deed to the property.
Evans & Associates Real Estate has brokered1031 Exchangesfor dozens of our clients. A 1031 Exchange is a great way to build wealth by deferring taxes and allowing your money to work for you. We have executed 1031 Exchanges on our own properties and know the ends and outs of using this tool successfully. Do not be nervous about this process an experienced broker can make it simple and stress free. The benefits are amazing and we can show you how it works.