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What is a 1031 Exchange?
In general terms, a 1031 Exchange is a real estate transaction selling one investment property, with the capital gains tax deferred, because of the purchase of another like-kind property, in exchange. The term "1031 Exchange" comes from section 1031 of the US Internal Revenue Code. For 1031 Exchange purposes, the term 'like-kind property' is interpreted as any type of investment property, rather than property owned for personal use. A delayed 1031 exchange (Starker exchange) involves a purchase that closes within 180 days of the sale. The 1031 Exchange rules continue to be modified and interpreted. In order to safely defer capital gains taxes, all the rules in the IRS code must be followed closely. Be sure to let your Realtor know that you are planning to do a 1031 Exchange when you buy or sell in exchange. The Realtor will consult with a closing attorney who is familiar with 1031 Exchanges, and the closing attorney will cooperate with a qualified intermediary, who holds the funds from the first sale in escrow until the exchange property's sale closes. For more information consult a qualified intermediary.
We can help you identify possible 1031 Exchange properties, write your offer with 1031 language, and cooperate with your qualified intermediary, or refer you to an intermediary. We have had experience with 1031 Exchanges, and are associated with professional title companies who are familiar with coordinating the various parts of the exchange so that the exchange meets the requirements of the IRC.
Please email us for more information. Or call Sarah Rummage direct, 615-516-5233 or John Rummage direct, 615-945-1838. We would like to work with you on your property exchange.
Starker Services - a qualified intermediary
Bayview Financial- a qualified intermediary
Title Company
Realty Title-Green Hills
Diane Mann
(Diane may refer you to another intermediary)
3815 Cleghorn, Suite 2
Nashville, TN 37215
Phone: (615) 383-4920
(615) 383-1390 |