TIP Commercial specializes in the 1031 Exchange

 Jason Trembicki & Craig Fernsler team up on many 1031 assignments, as Jason specializes in Multifamily & Development, while Craig specializes in “hands off” Retail properties.

We’re extremely passionate about helping our clients grow their real estate portfolios.   

Our team approach provides a wealth of knowledge and experience to our clients, and allows for a detailed approach from the initial consultation to the closing of escrow.   Whether you’re interested in expanding your portfolio and diversifying, or if you’re interesting in consolidating…we’ll ensure that your strategy is executed and that the exchange requirements are met.

The 8 Steps of a 1031 Exchange

The 1031 Exchange is a procedure that allows the owner of investment property to sell it and buy like-kind property while deferring capital gains tax. 

1031 exchange gets its name from Section 1031 of the U.S. Internal Revenue Code, which allows you to avoid paying capital gains taxes when you sell an investment property and reinvest the proceeds from the sale within certain time limits in a property or properties of like kind and equal or greater value.

Sell Property

Give Capital Gains to Qualified Intermdeiary

Identify Like-Kind Property Within 45 Days

Send Duty Letter to Quailified Intermediary

Negotiate with Seller Of Like-Kind Property

Agree On Sale Price

Have Your Intermediary Wire Capital Gains To Titleholder

Fill Out Form 8824

The Role of Qualified Intermediaries

Under section 1031, any proceeds received from the sale of a property remain taxable. For that reason, proceeds from the sale must be transferred to a qualified intermediary, rather than the seller of the property, and the qualified intermediary transfers them to the seller of the replacement property or properties. A qualified intermediary is a person or company that agrees to facilitate the 1031 exchange by holding the funds involved in the transaction until they can be transferred to the seller of the replacement property. The qualified intermediary can have no other formal relationship with the parties exchanging property.   We at TIP Commercial recommend using 1031 Corp, which is listed in our About section of the website.

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