1031 Exchange Qualified Intermediaries
G.R.E.A. helps find 1031 Replacement Properties within 45-days that meets your price, debt ratio, and closing date criteria.
Guide you safely through the maze of IRS forms
Explain the 4 types of exchange properties
Present the numerous 1031 Exchange property ownership options
Find a List of DFW 1031 Replacement Properties
1031 Replacement Properties and Qualified Intermediary Services in Dallas Ft. Worth
IRS tax code Section 1031 allows owners to sell investment property and, within 45 days, purchase a management-free real estate investment without paying any capital gains taxes. It’s called a 1031 Exchange Replacement Property and comes with a lot of advantages – IF it’s executed correctly. It’s one of the best methods for deferring capital gains tax from the sale of real estate. It also it provides real estate owners with greater leverage, increased diversification, geographic relocation flexibility, improved cash flow, and potential property consolidation.
Advantages of 1031 Property Exchanges
- Defer 100% Capital Gains Taxes
- Increased Tax Shelter
- Increased Cash Flow
- Freedom from Property Management
- Re-Leverage Your Equity
- Upgrade the Quality of your Real Estate
- Diversify your Real Estate Investments
- Simplify estate planning
- Smart Wealth Preservation Strategy
- Get a Stepped-Up Basis when you Die
1031 Property Exchange Requirements
G.R.E.A. will help you quickly find a qualified 1031 Exchange replacement property that meets your price, debt ratio, and closing date criteria. We’ll then expertly guide you through all financial paperwork, IRS requirements, and safely transfer funds within 45 days.
- Investor should reinvest 100% of the sale proceeds back into a replacement property. Any proceeds not invested will be subject to capital gains tax, aka the “mortgage boot” or “cash boot”.
- Investor must acquire a replacement property with the same or higher debt amount. If a qualifying replacement property is not acquired, and no re-investment is made, then the balance of the sales proceeds are subject to capital gains tax.
- Investor must use a qualified 1031 Intermediary to hold the sales proceeds until transferred into the replacement property. The qualified intermediary provides the 1031 escrow services, oversight, and expertise necessary to ensure the transaction qualifies as a legal Section 1031 Exchange.
- 1031 Exchange Replacements must be “like-kind” properties. However, raw land doesn’t need to be exchanged for raw land, or one income property exchanged for another. Any real estate property held for investment or real property used in a business can be exchanged in a 1031 Exchange for any other real property held for investment or real estate used in a business.
1031 Exchange Replacement Property Options
IRC Section 1031 requires the replacement property be held for use in a trade or business or investment. For real property exchanges, there are various alternative investment options beyond the acquisition of conventional direct administration.
Fractional Ownership 1031 Exchange Options
- DST Investments – All Asset Classes Available
- 1031 TIC Investments – Real Estate TIC and Securitized TIC
- NNN DST – Single Tenant or Multi-tenant
- 1031 REITS –DST that has a 721 Exit Strategy
- Oil & Gas Royalties and other Rights
Managed Sole Ownership 1031 Exchange Options
- Single Tenant NNN Property
- Private Exchanges – Passive Sole Ownership
- Single Family Homes – All Cash or Leveraged
The 4 Types of 1031 Property Exchanges
Delayed 1031 Exchange
The most common. Delayed Exchanges occur when the original property is relinquished before acquiring the replacement property.
Simultaneous 1031 Exchange
Simultaneous exchanges are when the relinquished property and the replacement property close on the same day. Requires expert excution.
Construction 1031 Exchange
Funds improvements to the replacement property by using tax-deferred dollars while held by a qualified intermediary for the a 180 day exchange period.
Reverse 1031 Exchange
Requires all cash to buy the replacement property through an exchange accommodation titleholder before exchanging the relinquished apartment