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A qualified intermediary specialist in 1031 exchange proceeds, including more difficult structures resulting from partnerships, lease buy-backs, and other complex structures. 1031 exchanges are where the sale of the like-kind property is exchanged without immediate tax liability to the property owner. 1031 Exchanges are most commonly used for real estate transactions but can include other depreciable assets.
- Forward transactions
- Complex transaction experts
- An industry leader in security and transparency
- Forward Exchanges
- Old or relinquished property is sold and closed before the replacement, or new property is purchased and closed
- Most common form of exchanges
The Strategic Group specialize in complex exchanges. These types of exchanges require a high degree of expertise and experience. Some typical structures include:
Two types of reverse exchanges
- Reverse Exchange First, Reverse Exchange Last
- The transaction must be completed within 180 days
- Once construction has been completed, the property is transferred to the taxpayer as the replacement property
- Taxpayer wishes to acquire land and construct ideal replacement property
- Considered exchanges that did not follow the safe harbor guidance, which was memorialized in its “no inference” language
Construction Leasehold Exchanges
- Replacement property is constructed upon land already owned by a party related to the taxpayer via a leasehold arrangement
- A taxpayer may not take title to the leasehold improvements while being completed
- Partners often wish to perform an exchange but discontinue the partnership relationship when selling real estate. There are several methods that all require significant planning and preparation
Security & Transparency
The Strategic Group is an industry leader in security and transparency of clients’ 1031 proceeds.
Dual Signature Authorization
- Our firm established the first dual authorization signature requirement for 1031 exchanges
- Both strategic advisors and the client must authorize the release of funds
- Many exchanges do not have this level of security embedded in their process
- Proceeds from a client’s sale are kept in segregated accounts to ensure their safety and security
- Clients have the transparency to request an account statement with their fund balance
- Many exchanges will co-mingle funds in a general account
Qualified Trust or Escrow
- Strategic advisors offers the option for funds to be held in a qualified trust or escrow with other financial institutions
- Many exchanges offer limited flexibility of where funds are kept