1031 Exchange/ Intercambio 1031

Below you will find a brief explanation of a 1031 exhange.  There are several companies that offer their services as Qualified Intermediaries and The 1031 Exchange Experts (based out of Denver) is one of the  more reliable ones.

Please note:  Although I cannot act as a Qualified Intermediary, I can certainly offer you professional and personalized representation during the purchase or sale of your property. 

1031 exchanges are specifically structured transactions that join together the sale of an old property and the purchase of a new property for the purpose of deferring taxes.

Exchanges are primarily used for buying and selling investment real estate, but they can also be used for personal property that is used in a business. Examples of qualifying property include bare land, rental property, commercial buildings and homes other than your primary residence.

A 1031 exchange can defer the capital gain taxes that are due when you sell property that has increased in value or been depreciated for tax purposes. These federal and state capital gain taxes can be costly.

Internal Revenue Code Section 1031 can benefit you in several other ways. By deferring taxes, you have increased flexibility, leverage and buying power. Exchanges also allow you to change, diversify or consolidate your investments.

You will need to follow six primary rules for your exchange to meet stringent IRS regulations.

1. Real Property Use. Both your old and new properties must qualify as investment or business use. If both properties pass this test, you can exchange nearly any type of real estate.

2. 45 Day Identification Period. You have 45 days from the closing of your sale to list the properties you may want to buy. There are no exceptions to the deadline.

3. 180 Day Exchange Period. From the sale closing date, you have 180 days to close on the purchase of one or  more properties from the 45-day list. Again, there are no exceptions to this deadline.

4. Qualified Intermediary (QI). The IRS mandates that you use a QI to prepare the legal documents for your exchange. Because the QI must be independent, it cannot be your friend, employee, broker, or even your accountant or attorney. The QI also holds your money, so that you do not have access to it.

5. Proper title holding. You must purchase and take title to your new property exactly as you held title to your old property.

6. Reinvestment Requirement. To defer all of your capital gain tax, you must buy a property equal or higher in value than the one you sold. Also, you must reinvest all of the cash proceeds from your sale.

Las leyes de impuesto del los Estados Unidos incluyen una que le da el derecho a dueños o inversionistas de vender sus propiedades (o negocios) y poder diferir los pagos de impuestos en las ganancias por medio de un intercambio llamado el Intercambio 1031 (se refiere al número de la sección de la constitución de impuestos del IRS).  Abajo está un breve resumen que le puede servir como guía.  Entre las compañias que ofrecen servicios específos para intercambios está The 1031 Exchange Experts (basados en Denver),

Aunque yo no califico como un Intermediario Autorizado, si puedo servirle como su representante en la compra o venta de sus propiedades. 

Necesita seguir seis reglas principales para que su intercambio cumpla con las disposiciones estrictas del IRS:

1. Uso de los bienes raíces. Tanto la propiedad anterior como la nueva deben calificar como inversión o de uso comercial. Si ambas propiedades pasan esta prueba, usted puede intercambiar prácticamente cualquier tipo de bienes raíces.

2. Período de 45 días para identificación. Usted dispone de 45 días a partir del cierre de la venta para hacer una lista de las propiedades que le gustaría comprar. No hay excepciones a esta fecha límite.