East Coast Abstract

1031 Exchange Information

A 1031 'like-kind' exchange is a tax deferral strategy that allows a taxpayer to defer income tax on gain from the sale of appreciated property. Tax-deferred exchanges are vital options for owners of businesses or investment property of all types and sizes.

As a general rule, all real estate is considered 'like-kind' to all other real estate. This means, for example, that you can exchange raw land for a skyscraper or a shopping center for an apartment building, which makes a like-kind exchange an attractive option for a taxpayer who wants to defer paying income tax on the gain from the sale of appreciated property.

Section 1031 of the Internal Revenue Code is not a tax loophole. It has been around as long as the tax codes itself and allows up to 100% deferral of the realized gain. This includes the capital gain plus the accumulated depreciation recapture. For investors large and small, there is no other provision in the tax code that favors this magnitude of tax deferral.

Why ECA 1031 Services Corp.?

The selection of your Qualified Intermediary (QI) is crucial to the success of your exchange.

ECA 1031 provides sound documentation and the services of highly-skilled exchange professionals.

There are other types of exchanges, such as reverse exchanges, improvement exchanges, and personal property exchanges. ECA provides unparalleled expertise for exchanges of real property, with a simplified and streamlined process.

Unlike other 1031 exchange servicer’s, ECA 1031 does not yield a profit from the exchanger’s deposit and only “parks” the deposits in Federally insured banks.  Ask us about the CDAR programs.

Who Can Exchange?

• Corporations Partnerships Individual
• Limited Liability Companies
• Trusts
• Foreigners who own U.S. property

Reasons for Exchanging:

• Change for the type of property you own
• Consolidate
• Diversify
• Accommodate life transitions
• Relocate
• Change tenants
• Transitions from maintenance-intensive property to professionally-managed property
• Improve your investment performance

Before you begin the exchange process, consult with your tax or financial advisor to insure that a 1031 exchange is right for you. If it is, then contact ECA 1031 Services Corp. at 800-734-7110. We will help you complete the exchange process.