Maximize your investment.
The purchase and sale of real property is a smart wealth-building tool. But property owners may lose valuable investment funds when the sale of an investment property requires the payment of capital gains and depreciation recapture taxes. Surety’s 1031 empower investors to preserve equity and save tax dollars through tax-deferred exchanges. Under Section 1031 of the Internal Revenue Code, you can defer the payment of capital gains taxes when you sell investment property and acquire “like kind” replacement property.
A 1031 exchange transaction typically requires the assistance of a qualified intermediary. When you work with Surety and our industry partners, you have peace of mind knowing your transaction is in the hands of an industry leader.
We provide:
- Nationwide service from knowledgeable, experienced 1031 exchange attorneys and professionals
- Qualified intermediary services for all types of exchanges, including simultaneous, deferred, reverse and improvement exchanges
- Personal attention
Exchange Types
Delayed Exchanges
When you sell your interest in investment property, you may incur federal capital gains taxes and, in some states, state taxes as well. Your attorney, tax advisor or real estate professional may suggest a tax-deferred exchange under Section 1031 of the Internal Revenue Code. A tax-deferred exchange allows you to dispose of investment properties and acquire “like-kind” properties while deferring federal capital gains taxes and depreciation recapture. Most states with a capital gains tax offer a similar tax advantage. The bottom line: a tax-deferred exchange allows you to reinvest sales proceeds that would otherwise be paid to the government in taxes.
Improvement / Build-to-Suit Exchanges
An improvement exchange occurs when a taxpayer wants to acquire replacement property and build improvements on it during the exchange period. This usually happens when the taxpayer determines that he or she will have exchange funds in excess of the cost of the replacement property. The excess equity is used to construct improvements on the replacement property.
Reverse Exchanges
A reverse exchange occurs when a taxpayer wants to acquire replacement property prior to the closing of the relinquished property. Although common terminology calls this type of transaction a “reverse exchange,” the taxpayer does not actually acquire the replacement property first and dispose of the relinquished property later. Instead, the taxpayer must arrange for an Exchange Accommodation Titleholder (EAT) to take title to either the relinquished property or the replacement property.
This allows the taxpayer to comply technically with the “relinquish first, replace later” order, while satisfying a market requirement to close on the replacement property.
With the strength, security and reputation of Surety and our industry partners, you can be assured that your reverse exchange will be handled with the utmost competence and efficiency.
