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
