“Plan in advance for the Exchange”

Gulf Coast Exchange Services cannot give legal or tax advice, however Gulf Coast Exchange does consult with the exchanger, as well as the exchanger’s CPA, accountant, attorney, broker, financial planner, and lender to facilitate the process.”

1031 Basics

Phone: 405-418-2103 Oklahoma              361– 949-8833 Texas

Fax: 405-842-0079

E-mail: cbarnes@gulfcoast1031.com       pcarlisle@gulfcoast1031.com

An Internal Revenue Code 1031 Exchange permits you to sell property without paying tax on the gain of the sale, if you replace the property by following the rules.

 

Exchanges have been available since 1921 under Section 1031 of the Internal Revenue code. A simple forward (aka deferred) exchange can start when someone offers to purchase your property. To convert the sale to an exchange, you will assign the sale contract to a Qualified Intermediary at Gulf Coast Exchange. Upon Closing the sale, the exchange funds are received by the QI’s bank via a wire transfer and deposited directly into an escrow account. Gulf Coast Exchange does NOT intermingle client funds with other client funds. They are held in individual accounts under the client’s name. These funds are held until the closing of the replacement property. The exchanger must never have constructive receipt of the funds. The law says:

“If you touch the money...you pay the taxes!”

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If the exchanger purchases a “like-kind” property following the rules and regulations of the IRC the owner of any business or property held for investment can defer paying federal and state capital gain taxes (15% + applicable state taxes).

 

The real power of a tax deferred exchange is not just this tax savings; it can help facilitate significant portfolio growth and increased investment. A

 

A 1031 will allow investors to use all of their proceeds from their sale to leverage into more valuable real estate, increased cash flow, consolidate into one large property, or diversify into other properties.