Land Exchange Corporation

Discover the Best Tax Strategy for Real Estate Investment

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1031 Exchange or a Reverse Exchange

A 1031 Exchange or a Reverse Exchange are two of the most powerful tax deferral strategies remaining available for taxpayers.

A sale and a reinvestment in a replacement property are converted into an exhange by means of an exchange agreement and the services of a qualified intermediary-such as Land Exchange Corporation-to ensure that the exchange is structured properly.

To start the process of a 1031 exchange or Reverse Exchange, call Land Exchange or access our Website at www.1031Landex.com. Allow us to make your experience rewarding and educational. We will help you take advantage of the opportunities available to you as our customer.

Requirements of 1031 Exchange or a Reverse Exchange

The 1031 Exchange Process

Qualified Property: most all property, both real and personal, can qualify for tax deferred treatment.

Property Purpose: both relinquished property and the replacement property must be held for productive use in a trade or business or for investment.

Holding Period: this faxt or circumstance is to be considered in determining whether the Purpose REquirement has been met.

Like-kind Property: "Like-kind" means "similar in nature or character, notwithstanding differences in grade or quality."

Exchanged vs. Cash: the property must be exchanged for another property and not sold for cash.

Time Limits: The taxpayer is required to identify the replacement property within a certain time limit after the transfer of the relinquished property AND must close on replacement property before a certain time.

Related Party: the rules including selling and acquiring to related and unrelated parties.

New Construction: rules dictate a time frame.

Let our Land Exchange experts aid in the exchange process to help with qualifications, time frame requirements and exchanging funds for either a 1031 Exchange or a Reverse Exchange.

The Taxpayer-(or Exchanger) -has property and would like to exchange it for new property.

The Seller-the person who owns the property that the taxpayer wants to acquire in the exchange.

The Buyer-the person with cash who wants to aquire the taxpayer's property.

The Qualified Intermediary-(or Land Exchange) is usually a corporation or limited liability company that neither begins nor ends the transaction with any property. They buy and then resell the properties in return for a fee.

Advantages of a 1031 or Reverse Exchange

Convenient Locations to Serve You

The advantage of a 1031 exchange is the ability of a taxpayer to sell income, investment or business property and replace with like-kind replacement property without having to pay federal income taxes on the transaction.

Exchanging is a creative method for marketing property.

A 1031 exchange allows for consolidation of investments by exchanging several properties for one equal to their combined value.

Exchanging allows for increased allowable depreciation recovery with acquiring property with a better than land-to-building ratio, a shorter useful life, etc.

Exchanging is an estate-building technique since, under current law, this tax liability is forgiven upon the death of the taxpayer, which means that the taxpayer's estate never has to repay the IRS.

Before deciding whether or not to engage in an exchange, you should carefully analyze all of your options. Land Exchange Corporation is ready and willing to help. The Qualified Intermediary that you choose should offer experience, exceptional personal customer service and have expert credentials. At Land Exchange Corporation you receive all this at our many convenient locations. Let us help you acquire the benefits you deserve on your investment.