Testimonials

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.

 

1031 Exchange of Vacation Property

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This 1031 exchange was a referral from a title company in Destin, Florida. The client sold a vacation property held as a rental and replaced with another rental property in a forward 1031 exchange. The identification of three properties was made prior to the 45th calendar day. Each property was for a purchase price greater than the property sold. The replacement property was purchased prior to the 180th calendar day.

Forward Exchange

In a forward 1031 exchange, the relinquished or old property is sold and closed starting the 180 calendar day time frame. The net equity from the sale is wired to a bank account under the Exchangor’s social security number and earns interest. A personal identification number (PIN) or qualified escrow agreement is selected requiring the Exchangor to authorize disbursement. Identification of up to three properties is faxed to the qualified intermediary prior to the 45th calendar day. The day prior to the closing on the replacement property, the net equity plus interest is wired to the title company. 1031 exchange documents are prepared for both closings in accordance with Section 1031 of the Internal Revenue Code with a summary of signed documents forwarded to the Exchangor and CPA for their records.

Testimonial

“No tax was paid and the 1031 service was efficient.”

Tom Davee
Madison, Indiana

1031 Exchange Collectible 52 Jaguar XK

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The investor found Atlas 1031 Exchange along with other qualified intermediaries in a Google search for accommodators to facilitate a 1031 exchange for a six figure collectible vintage sports car. His primary concern when selecting Atlas 1031 was their experience and knowledge with personal property exchanges, i.e. vintage sports cars. Personal property exchanges are not closed by title companies, but rather at auction or between exchangor, individual owners and companies. The investor’s 1031 exchange represented one relinquished for eight replacement sports cars. Each purchase required deposits and full use of the 180 calendar day window to complete the exchange. The investor was busy searching for the right car at an acceptable market value.

“Superb” is the word the investor used to describe his Atlas 1031 Exchange experience. “It was better than expected.” What pleasantly surprised him was the guidance he received to help him make good decisions. One bit of education that he noted helped him is that property located internationally is not considered like-kind with property located in the US. The type of car he collects is routinely available in Europe. The investor took ownership of the 1031 exchange by not hesitating to ask many good questions. He appreciated the patient answers. While on vacation to the Florida Panhandle we met and had lunch.

When asked what should be improved or an area that was not covered or gave him difficulty, he had no suggestions, feeling there was no stone left unturned. He felt no remorse from wishing he would have been better prepared to execute his 1031 exchange.

Collectors of vintage and sports cars can defer the federal and state capital gain by initiating a 1031 exchange when selling and replacing their collection.

New Zealand International 1031 Exchange

Posted on | by Tom Gustafson | Leave a Comment on New Zealand International 1031 Exchange

A 1031 exchange defers the federal and state capital gain when a taxpayer sells real property held for rental outside the US and replaces with like-kind real property of greater value internationally. Navigating the social norms with attorneys, banks and closing entities can be a huge challenge given those entities know very little if anything of a 1031 exchange. When the words, Internal Revenue Service are mentioned, many entities may elect to not participate or say no to the accommodator’s requests. A recent international exchange for real property held in New Zealand was successfully exchanged for real property in Canada. The challenge from the beginning was to have the closing entity wire funds to the local New Zealand bank and then to wire to Canada for the replacement property, while including the facilitator in the process. One of the closing entity’s concerns was that the deferred exchange had the cloak of a drug deal. In addition, there has been much concern regarding the prices of real estate in countries like New Zealand, Australia, and Canada, and the authorities in New Zealand have warned about heightened scrutiny for all large transactions. In the end the exchange funds were successfully wired directly to the bank in Canada to wait for the time to apply towards the closing.

Recently Canada implemented a new regulation taxing non Canadian citizens a fifteen percent tax on metro Vancouver real estate purchases. At this point in the exchange, was it still worth the deferred taxes? Fortunately, the spouse of the New Zealander is Canadian and the tax requirement was not applicable given the husband/wife live in the community property state of Texas.

Another consideration was that the purchase in Canada was for an unfinished condominium. The closing was delayed due to construction delays multiple times, eventually being closed only a month before the 180 day closing date limit.­

There were many challenges to this exchange. The Exchangor had a can-do attitude and the Escrow Holder was willing to be flexible, so with a lot of effort and follow thru we achieved the final outcome of a successful 1031 exchange.

Quote from the Exchangor:

“Andy was fantastic from the start. There were a number of obstacles that we had to overcome, and with his experience, he was always there to suggest legal alternatives that helped us work through banks and lawyers that were sometimes afraid to participate due to their unwillingness to work with foreign tax issues. I would not hesitate to work with Andy again.”

D.W.,

Dallas TX