Tom Gustafson

Rental Property 1031 Exchanged for Two Rental Properties

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Bill and Janice Kincaid were referred to Atlas 1031 by Pam Purdy of Reliable Land Title for the 1031 exchange of their rental property in Navarre, Fla. They had owned the property for more than 10 years and actively rented. The property is located a good distance from their home and they wanted to exchange for replacement property closer to their home.

1031 Exchange Steps

Before initiating a 1031 exchange, Bill and Janice asked many questions and followed up with phone calls to revisit the 1031 exchange steps. A forward exchange strategy made sense for them where the old property is sold before acquiring the new properties. Funds were held by VIST Bank in Leesport, Pennsylvania utilizing a personal identification number (PIN) known only between the bank and the taxpayers. The PIN provides a level of security authorizing wire outs. Replacement property was identified within the 45-day requirement. They elected to purchase two replacement properties. Prior to the closing, their net proceeds and interest earned were wired to the closings.

Testimonial

Bill remarked how paranoid his wife was with not knowing much about Atlas 1031. Janice said it was a little scary having someone hold your hard earned money in a bank you don’t know. She was satisfied with the 1031 services as everything was explained and went well. “No complaints and Andy Gustafson, Altas’ managing member, is very professional,” Janice said. Bill continued that Andy did a whale of a job and did exactly what he said he would do. “Andy was always available for our phone calls. Though we have never met him, we highly recommend his 1031 exchange services.”

Bill and Janice Kincaid
Northport, Alabama

1031 Exchange: Condominium for Condominium

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Bob was referred to Atlas 1031 by George Brannon Jr., CEO of SETCO Services, LLC, a title and escrow services provider with offices in Destin, Panama City Beach, Seacrest and Perdido Key, Fl. In Bob’s initial call, he explained his intent to sell a condominium held for investment and to initiate a 1031 exchange for real property located closer to his family’s home in Roswell, Ga.

Forward Exchange

There are different types of exchanges with the forward exchange being the most common. Reverse exchanges allow for the new property to be acquired before the sale of the old property.

The forward exchange was an appropriate strategy for Bob. The sale of his Destin, Fl. investment property was closed first, followed by the closing on the Roswell, Ga. property. There was no need to identify property formally given his actions completed the exchange prior to the forty-fifth calendar day milestone.

Testimonial

“The service was great. Andy made it very easy to understand and was always accessible to phone calls and responsive to our emails. We will use Atlas’ services again in the future.”

Bob and Marie Perrotta
Rosewell, Georgia

 

Land for Land 1031 Exchange

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Vicki Hoover at H & S Title and Escrow in Destin, Florida referred this 1031 exchange to Atlas 1031. The Taxpayer lives in Colorado and was selling and replacing property in the Florida Panhandle.

Simultaneous Exchange

A same day closing for both the old and new property was requested. Vicki coordinated the closing with all parties. This allowed for the exchange proceeds to be directed to the replacement closing without having to hold the net equity or exchange proceeds in an escrow account by the Qualified Intermediary.

Testimonial

“The reason, I wanted a 1031 exchange was to use those tax dollars towards purchasing the replacement property rather than paying the taxes now. It was completely painless and a simple process. The 1031 exchange could not have been any easier. I was comfortable with Andy from the start.”

Monica Holley
Telluride, Colorado

 

Bar Keepers Friend 1031 Commercial Improvement Exchange

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“Working with Atlas 1031 through this six month process was a pleasure. We were not familiar with the workings of a reverse 1031 exchange and Mr. Andy Gustafson’s assistance and guidance in this process was invaluable. We trusted Atlas 1031 with substantial responsibilities to pay vendors, hold our properties and account for the funds entrusted to them. We found working with Atlas 1031 on this transaction problem free and Mr. Gustafson’s interactions with our various stakeholders professional, responsible and meeting the highest standards of trust and accountability.”

This 1031 improvement exchange started with a call from Jake Sturman, Senior Vice President for Jones Lang LaSalle in Indianapolis who found Atlas 1031 on the web. He asked a number of questions about Atlas 1031 and the steps of a 1031 improvement exchange. He called later to ask a few more questions and said he would ask his client call to discuss their interest in a 1031 exchange.

SerVaas Laboratories Inc.

Paul SerVaas, President of SerVaas Laboratories, Inc. called to introduce himself, explained their potential commercial transaction and interest in learning more about an improvement 1031 exchange. We later met with his Executive Vice President Matt Selig, attorney and CPA to discuss the details of a 1031 improvement exchange.

SerVaas Laboratories is a family owned business that amongst other businesses manufacturers Bar Keepers Friend, a well known household cleanser manufactured in Indianapolis since 1882.

1031 Improvement Exchange

Their intent was to sell two commercial buildings and replace with a renovated commercial building providing office space and manufacturing facilities for Bar Keepers Friend.

  • The exchange was underway with the acquisition of their new facility titled to an Exchange Accommodator Titleholder (EAT).
  • While titled to the EAT, improvements were made, contractor invoices paid weekly by the EAT with funds provided by SerVaas Laboratories.
  • Near the 180th calendar day, the two commercial buildings were sold and the improved replacement property was conveyed to SerVaas Laboratories from the EAT.

The 1031 exchange effectively deferred the capital gain and recaptured depreciation of the two commercial buildings. This strategy of parking the replacement or relinquished (old) properties with an EAT is typical of a reverse 1031 exchange

“Andy successfully completed the rigorous IRS 1031 exchange formalities that allowed us to sell our old building while delaying the capital gains tax due on this sale until our new building is eventually sold.”

Paul SerVaas                    Matt Selig
President                         Executive Vice President
SerVaas Laboratoris Inc.
Indianapolis, Indiana

Land Sale in 1031 Exchange

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The client found Atlas 1031 Exchange on the web and discovered simple explanations and a local Midwestern presence. He felt the depth of 1031 content on the web site was a strong indication Atlas 1031 knew what they were doing. In addition, he felt comfortable reviewing the content and calling with questions. He was new to 1031 exchanges and was “scared” with  someone he didn’t know holding his money.

The client’s 1031 exchange involved the sale of a residential lot for a condominimum. This was a forward exchange with the purchase occurring quickly after the sale. The replacement property sales price was slightly less than the sale price of his lot. Consequently, the funds left over were held under his social security number, in a segregated account until the 45th calendar day post closing and returned to him the next business day.

Testimonial

“I didn’t understand how the 1031 exchange process worked and was really concerned with trusting a company found on the internet.  After talking with Andy, I felt comfortable given his responses and the number of exchanges he has accommodated that he was an experienced Qualified Intermediary.

Andy made it simple and easy. His explanations were simple to understand. How he explained it, is exactly how it happened. The best part about the 1031, is he guided me through each step. I didn’t use all my exchange funds for the replacement and they were returned just as he said they would be.

Andy was completely accessible and answered every question I asked without hesitation. He knows what he is doing and I will use him next time.”

Jeff McCarty
Indianapolis, Indiana

Do you have a 1031 related question? Considering a 1031 exchange and want to understand how it works for your transaction?

 

Gas Station and Convenience Store 1031 Exchange

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“Andy made it easy. He called to check up with me and kept me informed of the next step. He helped me a lot and I didn’t have to worry. This is my first 1031 exchange and I will do it again with Andy. He did a great job.”

This was a 1031 exchange where the taxpayer found Atlas 1031 on the web, sold a gas station and convenience store and replaced with a larger gas station and convenience store. One of the considerations was whether personal property would be exchanged. This meant storage racks, ice machine or any equipment that was not affixed to the ground. The taxpayer elected not to include any personal property in the 1031 exchange.

In the initial consultation, the taxpayer had found a replacement property that would be acquired for a higher price than the old gas station and convenience store. Following the first closing, the net proceeds were deposited with two banks, one requiring a personal identification number and the other a dual signatures to authorize disbursements. The replacement property was identified within the forty five day time frame. The replacement property closed near the end of the 180 calendar day window.

Once the final 1031 exchange documents were received a summary file was forwarded on to the taxpayer’s CPA to assist with completion of IRS Form 8824.

Yeun Lee
JC Shell Gas Station
Baytown, Texas

Considering selling your gas station, car wash, self storage facility or restaurant and want to understand how a 1031 exchange can benefit you? Are you a professional advisor and want to understand why Atlas 1031 Exchange is the right choice to provide Qualified Intermediary services?

1031 Exchange Benefits for Business Owners
The Certified Exchange Specialist on staff has been accommodating forward and reverse 1031 exchanges for professional advisor’s and their domestic and non resident alien clients since 2003.

Experience matters.