1031 Exchange Information

We at SUN 1031 feel that from time to time the 1031 exchange is by far the best vehicle for the average American to build wealth. Because we do not give advice on either tax, legal or 1031 exchange matters, you should consult your financial, tax and legal advisors for specific information and advice.

Ask yourself . . .

Why do I want to do a 1031 exchange?

Part 1

• Most people like the fact that a properly executed exchange allows them to take virtually all of the proceeds from the sale of an income property and put it into another income property. Without an exchange it is not uncommon for the seller to give up 24% or more of the sale price (unnecessarily) to taxes.

Part 2

• The often referred to 1031 Tax Deferred Exchange is found in the Internal Revenue Code Section 1031 (IRC 1031.) In a nutshell, this code says:

  • No gain or loss shall be recognized on the exchange of property held for investment purposes if such property is exchanged solely for property of like kind.
    
    
  • This allows an investor to avoid the drain of capital gains taxes and depreciation recapture when selling an investment property by simply exchanging into another investment property of equal or greater value when you follow the rules of a 1031 tax deferred exchange.

 

More on an Exchange

WHO:

• An owner selling income property (buildings or raw land, etc . . .)

WHY:

• To potentially put all of your sale price to work.

WHAT:

• An experienced team at Sun Exchange Properties to guide you through the process.

WHEN:

• Find and identify replacement property within 45 days of sale
  AND close within 180 days of original property sale.

WHERE:

• Your replacement property can be anywhere in the United States.
  Sun Exchange Properties closings happen at a title company.

HOW:

• Contact Sun Exchange Properties. They will work with you and/or your representatives.