With the real-estate recovery gaining momentum, I have noticed that 1031 exchanges have been picking up and thought I would take some time to remind people how best to prepare for a 1031 exchange.
A 1031 exchange is a great way for companies to defer capital gains taxes when they replace their relinquished assets for new like-kind assets. By using a 1031 exchange, companies are able to leverage their capital by using the money that would have gone to taxes, towards their new like-kind investments. However, despite careful planning, it is common for exchanges to take an unexpected turn; companies can struggle to sell a relinquished property or to identify a new one, or a forward exchange needs to be changed to a reverse. When these situations occur, the exchange documentation may need to be modified, taking a great deal of time and additional expenses.
A successful 1031 exchange takes careful selection of a qualified intermediary (QI); it is important for companies to work with a skilled team who is able to restructure account documentation at the last minute. An experienced and capable QI knows how to structure your exchange best, to handle last-minute developments efficiently and cost-effectively.
NES Financial has a perfect solution for your exchange. Our solutions combine proprietary state-of-the-art technology with subject-matter expertise in banking, real estate, leasing, transportation and 1031 regulations. Because of our industry-leading practices, we have become the nation’s leading provider of 1031 exchanges for the legal profession, banking industry, Fortune 500 corporations, and government agencies.
NES Financial’s 1031 Exchange Solution can save you both time and money. Be sure to work with the right qualified intermediary who is capable of handling any last-minute changes, and who can administer your exchange with the highest level of security, transparency, compliance and efficiency.
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