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Let Exchange Facilitators, Inc. act as your qualified intermediary for your next 1031 Property Exchange. EFI's principals are Andrew G. Levy and Stanley H. Goldstein, attorneys who combined have over 50 years experience in the real estate transactions.

What is a 1031 Tax Deferred Exchange?
Simply stated, a 1031 Exchange is a rollover of equity of like-kind investment properties. Under section 1031 of the Internal Revenue Code, a taxpayer may completely defer payment of taxes by structuring the "sale" as an exchange, in accordance with IRS Regulations. A 1031 exchange is an opportunity for the seller and buyer of investment property, or property used in a trade or business, to save in taxes and leverage income growth.

Selling a business or investment property typically requires payment of capital gains taxes. The tax bill can be heavy depending on the property's appreciation in value and length of time depreciated. However, under the 1031 Exchange, capital gains can be deferred or avoided if you "exchange" the property through a "Qualified Intermediary", such as Exchange Facilitators, Inc.

How to go about a 1031 Exchange:

1. Taxpayer finds a buyer and sells the property, structured as an "exchange" with the assistance of a Qualified Intermediary.
2. The funds from the transaction are invested in a "Qualified Escrow Account" pending the taxpayers location of an acceptable replacement property.
3. Taxpayer finds another property that fits their needs.
4. Taxpayer buys replacement property, with coordination and delivery of funds through the Intermediary. The parties may not know each other and their properties can be in different states.

Guidelines:
You can buy replacement investment or business property or properties of any kind with your proceeds.

The properties do not have to close at the same time. The taxpayer has 45 days after the settlement to designate replacement property(s) and 180 days (or before taxes are due that year) to settle on the new property(s).

The Intermediary should be financially strong with knowledge to make the transaction hassle and worry-free. The taxpayer's agent, broker, attorney, accountant, or family member is excluded as an intermediary. Exchange Facilitators, Inc. has completed hundreds of successful exchanges throughout the United States for satisfied clients.

What is the benefit of not paying taxes now?
The wealth of using equity you save by not paying the taxes now can be used to buy more investment property. And, when your heirs inherit your investment property, they take it over at its current market value. Any tax liability will be limited to the gains from the date of their acquisition, not during the years of your ownership. So, in essence the taxes you are saving now are never paid.