1031 Exchange Services
Assurance Title & Escrow Provides 1031 Exchange Services
As an investor in Florida, we know that you look for expertise and professionalism when it comes to handling your real estate investments appropriately. When you are looking for someone to handle your 1031 exchanges, you look to Assurance Title & Escrow.
Whether you are looking for simultaneous, deferred, reverse, or improvement exchanges, our experienced team can offer you 1031 exchange services.
Our role as the Qualified Intermediary (QI)
Draw up the necessary documents for the exchange
Handle communication with your tax advisor
Execute the closing docs
Hold all funds until exchange
And this is just to name a few!
As title agents who are experienced in the field of real estate transactions, we are able to navigate the entire process while communicating with all parties - real estate agents, tax/legal advisors, closing agents, and more.
So whether you are purchasing investment property in Fort Myers, Bonita Springs, Estero, or the surrounding areas in Florida, you can rest easy knowing that you have an industry leader on your side.
Frequently Asked Questions
What is a 1031 Exchange?
In short, a 1031 exchange is rightly named after Section 1031 of the Internal Revenue Code. This is a tool investors use to sell one investment property and purchase another similar or “like-kind” of property -- all while deferring capital gains.
Why do investors want to avoid capital gains tax?
Investors are out to make money - and purchasing an investment property is a fantastic way to begin building a portfolio. However, if you have to pay capital gains taxes every time you sell an investment property, this is going to take away from your earnings. A 1031 exchange allows you to avoid the tax while continuing to build up your investment portfolio.
What is considered a “like-kind” property?
Many people feel that if they sell a single-family home investment property that a like-kind property would be another single-family home. It could be, but it does not have to be. You don’t exchange a duplex for a duplex or a 4 unit quad for another 4 unit quad. This is not necessary at all.
What is meant by the IRS code is that the exchange you make must include property that has “the same nature or character.” In other words, you are selling an investment property and will need to purchase another replacement property that you will intend to hold as an investment.
What is a standard 1031 exchange?
A standard 1031 exchange transaction allows you to sell your investment property, find another property you are looking to invest in, and then purchase the property in another transaction at a later date.
This type of transaction is also referred to as a delayed or a deferred exchange. And it is the most common type of 1031 exchange.
What is the role of a Qualified Intermediary?
The proceeds from a sale, according to section 1031 of the IRS code, are taxable - if they are transferred directly to the seller. The QI receives the proceeds of the sold property and holds them until the exchanged property is purchased. At that time, those funds get transferred to the seller of the new property.
The QI facilitates the 1031 exchange of funds and has no formal relationship with either party involved.