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Inside Section 1
[ Qualify for an Exchange ] [ Planning an Exchange ] [ Acquiring Like-Kind Property ]
 

 
AVOID PAYING TAXES AND CONSERVE EQUITY
The most common objective of exchanging is to defer until you choose to pay the taxes associated with selling property. Even more importantly, you keep 100% of your equity working for you, rather than giving a portion to the IRS.

• Property must qualify for a tax-deferred exchange
   
• You must state that you are planning to do a tax-deferred exchange prior to the sale of your current property
   
• You must acquire "like-kind" property
   
• At a minimum, the same amount of debt and cash must be reinvested.
   
• The exchange transaction must be technically structured as an exchange and not just the sale of one property and acquisition of another.
   
• There are specific identification and acquisition time limits that must be met
   
• In order to have a valid exchange, you must purchase one or more properties which you have identified. You may NOT substitute different properties after the 45-day period has expired. There is no provision in the Internal Revenue Code to obtain an extension after the 45th day.
   
• The exchanger cannot have either actual or constructive receipt of any sale proceeds
   
• Contact us immediately when you identify the Title Company or closing agent, so we can follow up with them for documentation to complete the exchange

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