Waterford 1031 Exchange Services LLC: A National Qualified Intermediary for Tax Deferred Exchanges

How an investor can use a 1031 Exchange to build wealth and save taxes.

The following are some of the exchange terms and phrases that are often used within the industry.

Do's and Dont's of an Exchange

A replacement property must be held in the same manner as title to the relinquished property

Examples of Like-Kind Property

Delayed Exchange Deadlines and Property Identification Requirements

“Boot” is a term which refers to the items of personal property and/or cash that is necessary to even out an exchange.

Exchangers must report their exchange on the tax return for the year in which the exchange begins.

What Property Qualifies For IRC §1031 Treatment

IRC §1031 establishes four “safe harbors.”

Situations surrounding closing costs.

Disaster Relief Extensions for Exchange Deadlines

Foreign property is considered to be of like-kind to other foreign property.

Exchanges between related parties are allowed but the Exchanger must follow specific rules.

To satisfy the necessary "safe harbor" requirements the Exchanger must retain a Qualified Intermediary.

The delayed exchange provides Exchangers with more flexibility and options in acquiring the replacement property than the simultaneous exchange.

In a simultaneous exchange, the old property and the new property are transferred concurrently.

The build-to-suit exchange, gives the Exchanger the opportunity to use all or part of the exchange funds for construction.

In a reverse exchange the Exchanger must acquire their like-kind replacement property before disposing of a relinquished property.

Certain other interests in real property may be exchangeable as replacement property.

Deferring capital gain and other taxes through an IRC §1031 tax deferred exchange is also available for personal property.

An agreement between the Seller and the Buyer for the purchase of property in which the payment is deferred.

Refinancing to pull equity out of a property prior to or after completing a tax deferred exchange can result in a taxable transaction.

In most cases, it is preferable for the Exchanger to receive all cash for the sale of the relinquished property...

Exchangers engaged in a like-kind exchange of real estate often face difficulty in finding replacement property to complete their exchange.

This program offers several benefits to companies with regular and repetitive turnover of business assets.

The intent by the taxpayer to hold property "primarily for sale" will prevent the property from qualifying for IRC §1031.

Many times Exchangers own property that consists of both real and personal property, such as a hotel or restaurant.

The use of a Qualified Intermediary is essential to completing a successful IRC §1031 tax deferred exchange.

We are committed to bringing you the best quality service possible and guarantee 100% satisfaction.

There are many additional underlying reasons an investor might want to exchange one property for another.

An IRC 1031 tax deferred exchange can fail if the Exchanger has "actual or constructive receipt" of exchange proceeds or other property.

Find an experienced professional Qualified Intermediary to assist you with the exchange as early in the sale process as possible.

Property held for productive use in trade or business.

Additional rules for exchanges of personal property.

Receipt of other property or money in tax-free exchange.

Safe harbor for qualified intermediaries.

Non-recognition of loss.

Property acquired upon a tax-free exchange.

Coordination of section 1060 with section 1031.

Treatment of assumption of liabilities.

Exchange of livestock of different types.

Exchanges of multiple properties.

Treatment of deferred exchanges.