1031 Exchange

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Are you looking to defer capital gains tax on your investment properties? Based in Tampa, Florida, Rocket Title Services can serve as your qualified 1031 exchange intermediary.

Rocket Title leads clients through the following required steps to successfully complete a 1031 exchange in the United States.

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1. Agreement

We prepare the required exchange agreement between intermediary and exchanger.

2. Assignment

We provide notifications of the assignments to all parties and furnish instructions to settlement agents.

3. Escrow

We establish a qualified escrow account to hold proceeds from the relinquished property.

4. Identification Notice

We manage and monitor the 45-day identification notice for the replacement property and deliver escrow funds for the replacement property settlement.

5. Deeding

We arrange for the direct deeding of the 1031 exchange property.

6. Accounting

We compile a final accounting of the 1031 transaction and remit to you any unused portion of the proceeds / funds.

What real estate properties in the United States are qualified for 1031 exchange?

The property you plan to dispose of in your 1031 Exchange is referred to as the relinquished property. The property you wish to acquire to complete your 1031 Exchange is called the replacement property. In a single exchange, you may have more than one relinquished property and/or more than one replacement property. Both the relinquished property and the replacement property, according to the IRS, must be properties held for investment or productive use in a trade or business. A trade or business includes rental property, but also could include the location of your business such as a store or manufacturing plant, and vacant land. Personal residence property (such as a homestead property / property you live in) is not qualified 1031 Exchange property. However, please note that you can sell your primary residence in Florida and be exempt from capital gains taxes on the first $250,000 if you are single and $500,000 if married filing jointly.

What is the cost of 1031 Exchange services?

Based in Tampa, FL Rocket Title offers competitive 1031 exchange fees based on the sale price of the property. We collect our fee by deducting it from the sale proceeds of the relinquished property when we receive the funds to be placed in escrow from the closing agent. Although Rocket Title is based in Florida, we can serve real estate investors across the United States in both English and Spanish.

Defer Capital Gains Tax

Why should you consider a 1031 Exchange?

It’s simply the best way to defer capital gains tax on real estate in the United States. Individuals and companies who sell appreciated property (real estate) in the U.S. are subject to capital gains tax per IRS Code. However, per IRS’s 1031 Exchange rules, an exchange is not considered to be a sale and no capital gain is recognized or subject to tax. The basis of the relinquished property becomes the basis of the replacement property, and the capital gains tax is deferred until such time as the replacement property is sold. If the replacement property is later exchanged for another replacement property (not sold), tax is also deferred. In other words, as long as your business, rental or investment property (including vacant land in the United States) is disposed of via 1031 Exchanges, then the capital gains tax will continue to be deferred. Savvy real estate investors leverage 1031 Exchanges to grow the value of their real estate portfolio without having to pay a capital gains tax subsequent to each sale.

Qualified 1031 Exchange Intermediary

What Is 1031 Exchange Intermediary?

A Qualified 1031 Exchange Intermediary, such as Rocket Title Services, prepares all of the necessary documents including the Exchange Agreement, and enters into the Exchange Agreement with the exchanger. Then, as required by the Exchange Agreement, the Exchange Intermediary acquires the relinquished property from the exchanger, transfers the relinquished property to the buyer, acquires the replacement property from the seller and transfers the replacement property to the exchanger to complete the exchange. As a Qualified 1031 Exchange Intermediary, Rocket Title Services will lead you through the necessary legal steps to successfully complete your exchange.