Asset Exchange
Asset Exchange (1031)
A property used in business or for investment can be exchanged for “like-kind” property under IRC sect 1031(a)(1).
At the time of the sale of the property, any proceeds given to the Seller, or Exchangor, are automatically taxable.
In order to conduct a 1031 tax-deferred exchange, the proceeds from the sale of the relinquished property must be held in escrow by an Intermediary. If you would like Title One to assist you in this process, the Intermediary used to defer the exchange is Asset Exchange LLC. (In house Subsidiary)
The Exchangor has 45 days from the date of the settlement of the relinquished property to identify up to three (3) potential replacement properties to which Asset Exchange LLC can apply the proceeds held in escrow.
The Exchangor must settle on the replacement property within 180 days of the settlement for the relinquished property or the due date on the tax return for the Exchangor.
Asset Exchange LLC serves as the Intermediary for the 1031 tax-deferred exchange and prepares all the necessary documents to be signed at both settlements to fulfill the settlement. Asset Exchange LLC holds the net sales proceeds on behalf of the Exchangor, however, the attorneys associated do not provide tax advice associated with the 1031 exchange. It is recommended that Exchangors consult with either a tax attorney or certified public accountant for such advice.