1031 Exchanges

A successful IRC §1031 exchange transaction requires planning, expertise, and support. We assists our clients by explaining the various types of exchanges, providing expertise in choosing a qualified investment, and safeguarding the exchange process. Laying the proper groundwork before entering into an exchange will avoid unnecessary obstacles and lead to a smooth transaction.

Top Reasons to Exchange

Defer taxes

Defer Federal and State taxes (up to 35-40% of the gain)

Improve Cash Fow

Increase cash flow by exchanging equity into po.

Switch Property Types

Switch between residential, retail, industrial, multi-family and other asset types.

Estate Planning

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Expand Nationally

Open up opportunities to invest in national real estate.

Recast Depreciation

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Planning Ahead  

STEP 1. Contact us in advance of the closing date, as soon as escrow is opened, or after entering into the purchase and sale agreement, advise us of your intent to do an exchange. DIG will prepare help locate a qualified intermediary to prepare the appropriate Exchange Agreement, Assignments, and other documents that must be executed prior to the transfer of the Relinquished Property being sold.

STEP 2. Instruct your real estate agent or attorney to include an “Exchange Cooperation Clause” in the purchase and sale agreement.

STEP 3. We encourage you to engage your legal and tax advisors to counsel you throughout the exchange and the underlying real estate transactions. This is particularly important if you used your Relinquished Property at any time for personal use (primary residence, vacation home, or used by friends/family), or you plan some personal use for the Replacement Property. An exchange is a complex legal and tax transaction. we can make the exchange process smooth, but we cannot provide you with tax or legal advice.

STEP 4. Start searching for acceptable Replacement Property immediately to ensure that you can meet the strict time frame for the 45-day Identification Period.  We will schedule a time to review potential property options that meet your investment criteria.