Patty Grace of Old Republic Exchange Facilitator Company, has extensive experience as an Accomodator and in escrow. With her background, coordinating 1031 Tax Exchanges is a natural. Patty tailors her services for her clients so that each exchange focuses on individual needs and goals. Contact Patty at (888) 893-1031 for any questions. We have been using Patty,s services for over 6 years. |
Are you exploring your property investment options? Before purchasing or selling property, you should always consider the tax implications. Section 1031 of the Internal Revenue Code allows investors to defer the payment of taxes on the proceeds of sales by exchanging investment properties of "like kind" - that is, properties held for investment or for productive use in a trade or business. |
Seven Steps for a Successful 1031 Tax Deferred Exchange Step 1 Consult with your tax and financial advisor to determine if a tax deferred exchange is appropriate for your circumstances and compatible with your investment goals. Step 2 Listing the Relinquished Property for sale with a licensed real estate broker. The broker/agent will disclose the intent to complete an exchange in the listing agreement. Step 3 The Exchanger enters into contract with the Buyer for the sale/exchange of the Relinquished Property. Important: the broker/agent discloses the Seller/Exchanger's intent to exchange on the Purchase Agreement. Step 4 Open escrow for the Relinquished Property and coordinate with the Facilitator. All earnest money deposits should be placed with the escrow company. The Facilitator prepares the necessary exchange agreements and coordinates with the escrow holder. At the instruction of the Facilitator, the escrow holder deeds the Relinquished Property directly to the Buyer. The close of escrow of the Relinquished Property and the receipt of the net proceeds by the Facilitator completes the first half of the tax deferred exchange. The exchange documents must be in place and signed by all parties prior to the close fo escrow. Step 5 Replacement Property must be identified within 45 days from the close of escrow of the Relinquished Property. The identification letter must be in writing and signed by the exchanger, then delivered to the Facilitator. Step 6 From the closing on the Relinquished Property, the Exchanger has 180 days to acquire the Replacement Property. Exchanger enters into a contract to purchase the Replacement Property. Important: disclose the Exchanger's intent to complete the exchange and obtain Seller's cooperation. Step 7 Once escrow has been opened on the Replacement Property, the Facilitator prepares the exchange documents for the purchase. At the instruction of the Facilitator, the escrow holder deeds the Replacement Property from the seller directly to the Exchanger. Escrow agent will request funds required to close from the Facilitator just prior to closing. Please call Patty Grace for an information package or with any questions you might have: (888) 893-1031 |
Jeannine Cutter (702) 283-8882 David Berg (702) 281-5827 |
Did you know that the Internal Revenue Service allows you to sell your real estate investment property and defer paying Capital Gains Taxes by using the IRS Tax Code 1031. Read on for further information and guide lines. |
1031 Tax Deferred Exchange |
