DO MY BUYER AND SELLER HAVE TO COOPERATE?
No, the regulations simply say that your buyer and seller must be
notified in writing of your intent to effect an exchange.
However, most buyers and sellers are very cooperative because
the exchange has no effect on their property.
WHEN IS THE BEST TIME TO RETAIN AN INTERMEDIARY?
The best time to retain an Intermediary is when you are in the planning
stages. This allows us ample time to notify all parties and affords
you the opportunity to carefully review all documentation
well in advance.
WHEN IS IT TOO LATE TO EFFECT A 1031 EXCHANGE?
Once you settle on your relinquished property (convey title and
receive sale proceeds), it's too
late. Therefore, contact an Intermediary prior to closing/escrow.
CAN I CLOSE ON MY REPLACEMENT PROPERTY BEFORE I FIND A BUYER FOR MY
RELINQUISHED PROPERTY?
Yes. This exchange process is known as a REVERSE EXCHANGE.
For more information on
Reverse Exchanges, contact 1031 Corp.
via
e-mail or
call toll-free 1-800-828-1031.
CAN I MAKE IMPROVEMENTS ON MY REPLACEMENT PROPERTY?
Yes. Construction/Improvement Exchanges are a very viable
option to exchangers. However, they require advanced planning.
For more information on Construction/Improvement Exchanges, please
contact 1031 Corp. via
e-mail or call toll-free 1-800-828-1031.
IS THERE ANY LICENSING REQUIRED TO BE AN INTERMEDIARY?
Unfortunately, there is no licensing required to be an Intermediary, except
in the state of Nevada. 1031 Corp. welcomes the idea as it would
eliminate the many ill advised who are attempting to
facilitate exchanges.
HOW DO I KNOW WHAT INTERMEDIARY TO CHOOSE?
You should choose a solid corporation specializing in Section 1031.
The Intermediary should be staffed by well informed professionals with
the experience and expertise to facilitate even the most complex
exchange transactions.
An Intermediary should be able to provide you with a list
of client references.
CAN I TAKE SOME CASH OUT OF AN EXCHANGE?
Yes, the exchanger is permitted to receive some of the equity
or taxable "boot." However, be sure to discuss this with your
Intermediary prior to going to closing of your
relinquished property.
CAN I EVENTUALLY USE THE REPLACEMENT PROPERTY FOR MY PRIMARY RESIDENCE OR VACATION HOME?
Yes, but you must meet the holding period requirement prior to converting
use of the property.
The IRS has not specifically stated how long the holding requirement
is but we recommend maintaining a one to two year holding period prior
to selling or converting its use.
or
call MARGO MUCHA or CHERYL FAGAN at 1-800-828-1031.
677 West DeKalb Pike
King of Prussia, PA 19406