1031 CONSULTING SERVICES
Educate, Facilitate, Transact
Get a Free 1031 Exchange Plan Get a Free 1031 Property ListLet our team assist you with the design and implementation of your 1031 exchange. We work with you to create a solution built around your specific investment objectives. Let us guide you through our three-step approach.
Discovery, Design
We listen first to your goals and needs to thoroughly understand your objectives. Then we design the appropriate property allocations and preview properties.
Execution
Utilizing our network of industry leading partners, supported by our unqiue technology, we effectively and transparently execute all phases of your 1031 exchange.
Reporting
Track your investment online and access key reports using your private login information. The platform allows you to invite 3rd party advisors to view key documentation.
Your 1031 Exchange Timeline
1. Plan Your Exchange
Discuss your upcoming exchange with your Engineered1031. Our team will walk you through the entire process from listing your property, to the closing logistics and help you with your 1031 exchange math.
2. Set Up 1031 Account
Contact our 1031 facilitation partner Fyntex to create your documents and set up your 1031 trust account. Do this before closing.
3. Close the Old Property
Ensure that your 1031 documents are executed at closing. After closing your funds are wired to your trust account and your 45/180 clock starts.
4. ID Replacement Property
Contact Engineered Tax Strategies for available investment grade interests, Opportunity Zones, Net Leased properties or DSTs.
5. Close New Properties
Remember that your Replacement Properties must be closed within your 180 day exchange period. When closed the exchange is completed.
6. Report Your Exchange
Once your 1031 is complete file an IRS Form 8824 with your tax return. The 8824 is a one pager listing the old and new properties.
Why Exchange?
The Section 1031 exchange is widely considered to be the last great wealth building tool available to investors. For investment or income property owners it remains an unsurpassed vehicle which drives equity growth, uniquely defers capital gain taxes and depreciation recapture, and overall builds value.
1031 EXCHANGE BENEFITS
Exchange Tutorials
Types of Exchanges
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Simultaneous
Prior to Congress modifying the Internal Revenue Code and formally approving the concept of delayed exchanging, virtually all exchanges were of the simultaneous type. To qualify as a simultaneous exchange, both the relinquished property and the replacement property must close and record on the same day.
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Deferred
Generally, when one discusses exchanges, the type of exchange referred to is the delayed, deferred or Starker exchange. This term comes from the name of the Exchanger who was first challenged for a delayed exchange by the IRS. From this tax court conflict came the code change in 1984 that formally recognized the delayed exchange for the first time. This is now the most common type of exchange.
In a delayed exchange, the Relinquished Property is sold at Time 1, and after a delay of up to 180 days, the Replacement Property is acquired at Time 2. -
Reverse
The reverse exchange represents an exchange in which the exchanger locates a replacement property and wants to acquire it before the actual closing of the relinquished property. Since the exchanger cannot purchase the Replacement and later exchange into property that he already owns, he must find a method to acquire the replacement property and still maintain the integrity of the exchange.
The most common reverse exchange approach is for the exchanger to arrange the acquisition of the replacement property by adding enough cash (or arranging suitable financing) to buy the new property. The title for the new property is then held by an exchange accommodation titleholder (an LLC created by the qualified intermediary). The EAT holds title to the replacement property until such a time within the 180 day exchange period that the relinquished property is sold. At that time either the replacement property is deeded to the exchanger by the EAT, or the EAT itself is transferred to the Exchanger.
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Improvement
In some cases, the replacement property requires new construction or significant improvements to be completed in order to make it viable for the specific purpose the exchanger has intended for the property. Such construction or improvements can be accomplished as part of the exchange process, with payments to contractors and other suppliers being made by the qualified intermediary or facilitator out of funds held in a trust account. Therefore, if the replacement property is of lesser value than the relinquished property at the time of the original transaction, the improvement or construction costs can bring the value of the replacement property up to an exchange level or value which would allow the transaction to remain completely tax-deferred. Most improvement or construction exchanges utilize an exchange accommodation titleholder to hold the title to the property while the improvements are completed. This avoids a situation where the exchanger is exchanging into property he already owns.
Consulting Services
Provided by Fyntex 1031
Unsurpassed Expertise
As a national 1031 Intermediaty, Fyntex leads the tax-deferred exchange industry.
From Simple to Complex
Fyntex can handle exchanges from basic deferred exchanges to complex reverses.
Real Funds Security
Fyntex only utilizes restricted trust accounts for every exchange.
24/7 Visibility
Both Exchangers and their advisors can track exchanges in the secure portal.
Replacement Properties
The toughest part of any exchange is finding a suitable replacement property. If you'd like to see our inventory of institutional quality properties, we'd be pleased to show you the best investment grade alternatives available.