1031 exchange

Farmland Forward 1031 Exchange

Posted on | by Tom Gustafson | Leave a Comment on Farmland Forward 1031 Exchange

An Indiana farmer was looking to initiate a forward 1031 exchange, selling farmland for a vacation rental property in the Florida Panhandle. His Realtor in Florida referred him to Atlas 1031 Exchange. The Realtor called to let me know her contact that he works long hours. Born and raised around farms in Indiana, I knew what she was suggesting that it may take time to contact Dave given it was September; dry, meaning harvest time was in full swing. We first spoke on Sunday evening and I listened to his questions and explained the 1031 exchange process. Dave called later that week in the evening to ask a few more questions before deciding to work with Atlas 1031.

His Concerns Were:

  • “I don’t know Atlas 1031 or Andy.”
  • “How do I know my money will be secure and there when needed.”
  • “How complicated is this 1031?”

We talked about a 1031 exchange, the steps of the forward 1031 exchange, the banking service providers, their stability, my experience with them over the years and his options to secure his funds. Dave chose to use the personal identification number (PIN) option where the PIN known only between he and the bank, would be required to authorize the wire out. The bank called soon after the account was establised to set up his PIN. When the Florida title company was ready to close on the replacement property, I initiated the wire and the bank called Dave for his PIN. The funds were wired the same day. Dave completed the 1031 exchange before the forty-fifth calendar day so there was no need to formally identify his replacement property.

Testimonial

“How Andy explained the process is exactly how it worked. He listened and explained each answer, sometimes more than once. He was accessible, thorough and knows the 1031 inside and out. I will use Andy and Atlas 1031 again and … I am happy to help him.”

Dave Nurrenbern,
Evansville, Indiana

 

 

Land Sale in 1031 Exchange

Posted on | by Tom Gustafson | Leave a Comment on Land Sale in 1031 Exchange

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

Posted on | by Tom Gustafson | Leave a Comment on Gas Station and Convenience Store 1031 Exchange

“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

Posted on | by Tom Gustafson | Leave a Comment on 1031 Exchange of Vacation Property

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

Real Estate Investment and 1031 Exchange

Posted on | by Andy Gustafson | Leave a Comment on Real Estate Investment and 1031 Exchange

Real estate investment and 1031 exchangeReal estate investors should be familiar with the requirements of the Internal Revenue Code Section 1031 exchange. All too often, taxpayers have mis-interpreted or received bad information that can potentially jeopardize the tax consequence of their real estate investment. A 1031 exchange allows the taxpayer subject to federal and state taxes to defer the federal and state capital gain along with the depreciation recapture taxes when selling and replacing with like-kind property. The deferral represents an indefinite interest free loan that is not due until the replacement property is sold. Imagine an interest free loan that can represent up to forty percent of the sales price.

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1031 Exchange Change in Administration’s 2015 Budget

Posted on | by Andy Gustafson | Leave a Comment on 1031 Exchange Change in Administration’s 2015 Budget

1031 Exchange 2015 Budget ProposalA change to the 1031 exchange is proposed in the Administration’s Fiscal Year 2015 Revenue Proposals to be effective for all like-kind exchanges completed after December 31, 2014. On page 102 of the 297 page budget proposal, the modification to the 1031 exchange is recognized as a loophole closer.

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