Emerald Coast Qualified Intermediaries, Inc. is our sister company specializing in IRC 1031 Exchanges.
Thanks to Internal Revenue Code Section 1031, a taxpayer may defer tax on the gain from the sale of property used in a trade or business or for investment, provided that he or she reinvests the gain in property used in a trade or business or for investment. The language of §1031 is straightforward: “No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment.
A real estate professional equipped with knowledge of §1031 exchanges can offer valuable assistance to the investor. It is important that the investor and all those assisting the investor understand §1031 exchange variations and the procedural facets of §1031 exchanges.
There are a few key rules for taking full advantage of a §1031 exchange opportunity. First, all properties involved should be of like kind. Second, astute real estate investors will seek to exchange 100% of the value from the relinquished property into the replacement property. Finally, to take full advantage of the §1031 provisions, the debt on the replacement property should equal or exceed the debt on the relinquished property, or additional cash from the exchanger can offset the replacement debt.
We offer this information to familiarize you with the §1031 exchange process and help you take full advantage of the exchange options available. Emerald Coast Qualified Intermediaries is a qualified intermediary for §1031 exchanges and stands ready to assist you with your exchange needs.
Our accommodator services can be used for traditional simultaneous exchanges, delayed exchanges, reverse exchanges and other exchange variations. Emerald Coast Qualified Intermediaries often facilitates transactions in which a buyer or seller prefers not to be directly involved in an exchange agreement, but is willing to cooperate with the taxpayer or exchanger in completing a tax deferred exchange.
Emerald Coast Qualified Intermediaries cannot advise you concerning the specific tax consequences or advisability of a deferred exchange for tax planning purposes. You will be required to seek the counsel of you accountant or attorney. If we can answer any of your general questions, or those of your representatives, please do not hesitate to contact us.
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Please contact Missy Rodriguez for more information at missyr@bobmcgill.com
