FirstBank provides Certified Exchange Specialists who are available to set up tax-deferred 1031 Exchanges.
If you are selling an investment property and intend to reinvest the proceeds in a similar investment property, you should never have to pay capital gains taxes on the sale. Defer the taxes on the transaction with a 1031 Exchange.
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What is a 1031 exchange?
When you sell an investment property, you would normally pay capital gains taxes on the sale. However, a seller can set up a "1031 exchange" prior to selling a property to defer the capital gains taxes. As long as a similar property of equal or higher value is purchased with the sale proceeds, the seller may defer paying the capital gains tax. FirstBank 1031 Corporation has extensive knowledge and experience to guide you and process your successful exchange transaction.
What does FirstBank 1031 Corporation do?
The IRS 1031 regulation requires that a Qualified Intermediary hold the proceeds of an exchange sale. Since the seller cannot take possession of the sale proceeds, FirstBank 1031 Corporation steps in for the seller and holds the funds until a replacement property can be located and purchased.
Sometimes, a seller finds a property they want to buy as a replacement before they sell their investment property. FirstBank 1031 Corporation can take title to the new property until the seller is able to sell their current property and apply the proceeds to the purchase of the new property. This "reverse" approach is ideal if a new investment property is found prior to selling the current property or if more time and flexibility are needed to complete the sale transaction. FirstBank can provide both temporary and permanent financing to facilitate 1031 exchange requirements using the reverse exchange method.
A 1031 exchange can be a complicated transaction and requires expert guidance. FirstBank 1031 Corporation has Certified Exchange Specialists who can consult with customers to ensure a successful exchange process while adhering to the IRS 1031 regulations.