You no longer have to wonder about how you can defer capital gain taxes on your property. With 1031 like-kind exchange, real estate and property dealing businesses have grown tremendously. A 1031 tax exchange allows you to sell your old property and purchase a new one without paying any capital gain taxes.
How does this help realtors and business property investors? By not paying taxes, property owners are able to buy better properties which nets them better profit in the coming years.
A 1031 tax exchange is an easy process but requires your property to meet some criteria and the involvement of a Qualified Intermediary (QI). Your property should not be residential and must solely be used for trade or business investment only. Your property’s level of the sale price, equity, and debt level are also taken into account. Moreover, after selling your old property, the replacement property in 1031 exchange must be equal or higher in value than that of your old property.
Finally, you have 45 calendar days to identify a new property and a total of 180 calendar days to close in on the identified property.
With Fai Exchange, the entire process of 1031 like-kind exchange becomes a whole lot easier. We become your Qualified Intermediary and also help you in arranging the necessary documents for the exchange to happen.