1031 Exchange Corporation

What Is a 1031 Exchange?

When property is sold, the seller pays tax on any gain or deducts a loss. Section 1031 of the tax code gives taxpayers an opportunity to defer any gain on the sale of qualified property. Most exchanges are completed through an intermediary (such as 1031 Exchange Corporation). The IRS has published rules (safe harbor rules) for an intermediary assisted exchange. If these...

Time To Exchange?

We Can Help! You Can Trust Us With Your Exchange! 1031 Exchange Corporation has provided advice and expertise for exchange clients since 1993. We are a member of the Federation Of Exchange Accommodators and have a Certified Exchange Specialist on staff. To protect our clients and the funds entrusted to us, we offer the option of a Qualified Escrow Account, use a...

What is a 1031 Exchange?

When property is sold, the seller pays tax on any gain or deducts a loss. Section 1031 of the tax code gives taxpayers an opportunity to defer any gain on the sale of qualified property.

Most exchanges are completed through an intermediary (such as 1031 Exchange Corporation). The IRS has published rules (safe harbor rules) for an intermediary assisted exchange. If these rules are followed, the IRS will not challenge the exchange. This safe harbor is a primary reason for using

Should You Exchange?

Does An Exchange Make Sense?
Should I exchange is a common question. Sometimes the answer is clear and other times it is not. We will examine some of the issues or decision points which can help you decide.

Do you intend to re-invest in like-kind property?
If the answer is yes, the exchange decision is easy. An exchange makes sense if the cost of the exchange is less than the tax saved.If you do not intend to re-invest in like-kind

Planning an Exchange

Planning can maximize benefits
Very little forethought is required to set up an exchange. You can even call a few hours before closing and we can usually prepare the documents required to establish an exchange. However, a little planning can help maximize the tax and economic benefits from an exchange.

Planning should start with an analysis of the property (relinquished property) you intend to sell or exchange. What is the likely sales price of the property? What is your tax basis?

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Washington State Law

“Washington state law, RCW 19.310.040,
requires an exchange facilitator to either maintain a fidelity bond in an amount of not less than one million dollars that protects clients against losses caused by criminal acts of the exchange facilitator, or to hold all client funds in a qualified escrow account or qualified
trust that requires your consent for withdrawals. All exchange funds must be deposited in a separately identified account using your
taxpayer identification number. You must receive written notification of how your exchange funds have been deposited. Your exchange facilitator is required to provide you with written directions of how to independently verify the deposit of the exchange funds. Exchange facilitation services are not regulated by any agency of the state of Washington or of the United States government.It is your responsibility to determine that your exchange funds will be held in a safe manner.”