Service You Can Trust
Western Slope Exchange, LLC is a professional intermediary firm specializing in a wide variety of real estate, exchange and escrow services. We handle all real and personal property exchange variations, including: simultaneous, delayed, build-to-suit, reverse and multiple property.
Why a 1031 Exchange?
Section 1031 of the Internal Revenue Code of 1986, as amended, offers real estate investors one of the best opportunities to build wealth and defer taxes. By completing a qualified exchange, the investor (Exchangor) can dispose of their investment property, use the proceeds to acquire "like-kind" replacement property, and defer the capital gains tax that would ordinarily be paid. In effect the tax savings are used as leverage to acquire the replacement property.
What is Like-Kind Property?
Generally, any real property held either for investment or use in trade or business can be exchanged for any other real property held for investment or use in a trade or business. A personal property exchange, such as aircraft, coins or business property can also qualify as a 1031 exchange.
What are the Requirements for a 1031 Exchange?
To complete a 1031 Tax Deferred Exchange, the investor or exchangor must meet requirements that include:
- Identifying a replacement property within 45 days from closing the sale of the relinquished property.
- Completing the acquisition of the replacement property by the earlier of (1) 180 calendar days after the close of the sale of the relinquished property, or (2) the date the tax return is due for the taxable year of sale.
- Avoiding receipt of the funds from the sale of the relinquished property. This necessitates using Western Slope Exchange, LLC, or a similarly qualified intermediary to facilitate your 1031 Tax Deferred Exchange.
Are there Different Types of 1031 Exchange?
There are several types of 1031 Exchange that include:
- A Simultaneous Exchange
- A Delayed Exchange, where the Exchangor has up to 180 days to purchase a replacement property.
- A Reverse Exchange, where the Exchangor purchases the replacement property prior to selling the relinquished property.
- An Improvement or Build-to-suit Exchange, where the Exchangor uses funds from the sale of the relinquished property to (1) make improvements to an existing property, or (2) build a new replacement property.
What is the Role of Western Slope Exchange, LLC?
Western Slope Exchange, LLC will act as your Qualified Intermediary. We will draft all documents necessary to facilitate the exchange, act as the seller of the relinquished property, deposit the proceeds from the sale in a Qualified Escrow Account and use the proceeds to purchase the property you identify as a replacement property.