1031 Exchange Services

The Seaport Title Agency offers 1031 Exchange Services through our recommended provider Exchange Solutions, Inc.

The intermediary of choice to guide you through the safe harbors, Exchange Solutions, Inc. is a fully Bonded and Insured 1031 Accommodator dedicated to providing exceptional services.

FAQ's about a 1031 Exchange

Who qualifies for an exchange?
Anyone who owns and desires to sell investment or business use property should consider a tax deferred exchange.

What is a tax deferred exchange?
A method by which a taxpayer can trade a property or properties for other like-kind property without having to pay some or all of the capital gains tax in the property to be exchanged, by trading equal or up in value. Property that qualifies as like-kind must be held for investment or for productive use in a trade or business.

Some property types that do not qualify for a 1031 Exchange are: Primary residence, Stocks, Bonds & Notes, Partnership interest and Inventory.

Different Types of Exchanges
  • Delayed Exchange
  • Simultaneous Exchange
  • Construction/Improvement Exchange
  • Reverse Exchange
  • Personal Property Exchange
  • Build to Suit Exchange

Key Elements of an Exchange
  • Intent of an Exchange
  • No actual/constructive receipt of exchange proceeds
  • Identification of replacement property withing 45 days of sale closing
  • Acquisition of replacement property must be completed withing 180 days of the sale closing
  • The market value of the replacement property must be equal to or greater than the relinquished property sold for a full tax deferral
  • Same taxpayer requirement
  • Properties must be of like-kind or like-class
  • And the use of a Qualified Intermediary

Three Ways to Identify Property
  • 3-property rule: Identify any three properties as possible replacement for your relinquished property
  • 200% rule: Identify any number of properties as possible replacement for your relinquished property as long as the aggregate fair market value does not exceed 200% of the relinquished property.
  • 95% rule: Identify any number of properties as long as you purchase at least 95% of the aggregate fair market value of all properties identified.

Advantages to an Exchange
  • Allows taxpayers to sell property and defer all or partial gain.
  • The taxpayer increases selling and buying power by electing to avoid the payment of capital gains tax to the IRS.
  • Allows a taxpayer to diversify or consolidate one's own investment portfolio. Some property types that do qualify:
Real property
Vacant land
Rental property
Commercial property
New York cooperatives
New York condominiums
Minerals, air rights, water rights, and oil rights
Personal Property
Equipment and Furniture

Exchange Solutions, Inc. provides one-on-one service to all of its customers to maximize their benefits of completing an exchange. We take the time to educate each customer and analyze all of the appropriate options for each taxpayer's needs. We deliver exceptional value and solutions to our customers.

For more information, please call us at 516.771.2400 or visit our web site: www.ExchangeSolutions.com.

Exchange Solutions, Inc.
106 Woodcleft Avenue
Suite C
Freeport, NY 11520
Tel: 516.771.2400
Fax: 516.771.2500
e-mail: dianes@exchange-solutions.com
web: www.ExchangeSolutions.com

Member: FEA - Federation of Exchange Accommodators
Member of Staff: CES 1031