Our August partner spotlight is Northwest Title and their affiliated 1031 exchange company – NW Exchange.
What is a 1031 exchange? It allows the owner(s) of an investment property to sell the property and buy another like property of equal or greater value. Capital gains taxes on the sale of the property (relinquished) are deferred until the purchased property (replacement) is sold at a later day.
Why do a 1031 exchange? A 1031 exchange allows you to use the amount of the equity from the sale of the relinquished property to purchase more in a replacement property.
NW Exchange offers a Qualified Intermediary (QI) that is responsible for helping to facilitate the exchange while keeping in accordance with Treasury Regulation. Once entered into a written exchange agreement, the QI is responsible for the following:
- Acquiring the relinquished property
- Transferring the relinquished property to the new buyer
- Acquiring the replacement property
- Transferring the replacement property to the Exchangor
3 simple rules for a 1031 exchange:
- The replacement property must be selected within 45 days of the sale of the property relinquished
- The replacement property being purchased must be close within 180 days from the date the relinquished property was sold
- The replacement property must be equal to or greater in value of the property that was relinquished to be fully tax-deferred
If you are thinking about selling a property, call us today at #614-726-6971
Ryan Reynolds Team, LLC : Unlimited Opportunities, Exceptional Experiences-
ryanreynolds@kw.com
(614) 726-6971
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