 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
| 1031 Tax-Deferred Exchange What is a Tax-Deferred Exchange? • It is the method by which a property owner disposes of one property and acquires another without paying • It is allowed under Section 1031 of the Internal Revenue Code • It defers tax on gain from disposal of relinquished property until and only if the replacement property is sold • It requires an “exchange” of properties rather than a “sale” of one property and the purchase of another • It is facilitated by means of an Exchange Agreement and other documentation together with the assistance of What is a Qualified Intermediary? A qualified intermediary is a knowledgeable, independent person or company that: • Provides documents and outlines the procedures for completing the exchange • Completes the transfer of the exchangor’s property • Holds exchange proceeds in non-simultaneous exchanges until the replacement property is acquired • Is not an “agent” of the exchanger (ie. exchangor’s realtor, attorney, accountant, banker, title company What are Exchange Advantages? • Allows an owner to dispose or property without incurring immediate tax liability • May indefinitely postpone tax liability through the use of subsequent exchanges • Tax liability is forgiven upon the death of the owner/exchanger • Exchangor’s heirs inherit property at the “stepped up” basis • An important estate-planning tool For additional information regarding the 1031 Tax-Deferred Exchange Program including the requirements and guidelines, please contact your local Devon Title office or Visit the Exchanges website.
|
 |
||
 |
||
 |
||
 |
||
 |
||
 |
||
 |
||
 |
||
 |
||
 |
||
  |
 |
|