As your qualified intermediary, 1031 Solutions takes care of all aspects of your exchange. Our efficient process ensures that your exchange is handled smoothly and that you are informed of all deadlines and requirements as your exchange progresses. We prepare all documents necessary for your exchange to comply with the Internal Revenue Code and Treasury Regulations. We work with your closing agent to make sure all closing documents correctly reflect the exchange and that funding takes place as needed. We help you navigate each step of the exchange process, and we are always available to discuss the details of your exchange with you, your realtor, CPA, attorney, or other advisor.
The most common type of exchange is a forward exchange, where you sell the property you wish to exchange before you purchase your replacement property. It is important that you have the exchange documentation in place before you close on the sale of your property.
If you need to acquire your replacement property before transferring your existing property, it is possible to defer your gain by structuring the transaction as a reverse exchange. A separate entity is formed to serve as the exchange accommodation titleholder which takes title to the replacement property until your existing property is sold. 1031 Solutions has assisted hundreds of clients with reverse exchanges. Because of the legal complexities involved in reverse exchanges, reverse exchange fees are quoted for each transaction.
If your replacement property needs to be constructed or repaired, an improvement exchange allows you to count the cost of construction or repair toward your replacement property value. Similar to a reverse exchange, in an improvement exchange, an exchange accommodation titleholder entity takes title to the property until the improvements are completed.