1031 Exchange Services
Comprehensive qualified intermediary services to help you defer capital gains taxes and keep more of your investment working for you.
What is a 1031 Exchange?
A 1031 exchange, named after Section 1031 of the Internal Revenue Code, allows real estate investors to defer paying capital gains taxes when they sell an investment property and reinvest the proceeds into a "like-kind" property.
This powerful tax deferral strategy has been used by savvy investors for decades to grow their real estate portfolios while keeping more capital working in their investments rather than paying it to the IRS.
To qualify, both properties must be held for investment or business purposes, and strict timelines must be followed. That's where a qualified intermediary like Olympic 1031 Exchange comes in.
Example Tax Savings
Types of 1031 Exchanges
We facilitate all types of 1031 exchanges to meet your specific investment strategy.
Forward Exchange
The most common type of 1031 exchange. Sell your relinquished property first, then acquire replacement property within the required timeframes.
- Sell property, then buy replacement
- 45 days to identify replacement properties
- 180 days to complete the exchange
- Most straightforward exchange type
Reverse Exchange
Acquire your replacement property before selling your relinquished property. Ideal when you find the perfect property but haven't sold yet.
- Buy replacement property first
- Property "parked" with accommodation titleholder
- 45 days to identify property to sell
- 180 days to complete the exchange
Improvement Exchange
Use exchange funds to make improvements on the replacement property. Also known as a construction or build-to-suit exchange.
- Improve replacement property with exchange funds
- Improvements must be completed by day 180
- Receive "substantially the same" property identified
- Complex but powerful strategy
Critical Deadlines
These deadlines are strict and cannot be extended. Missing them will disqualify your exchange.
Sale Closes
Relinquished property sale closes. Exchange funds transferred to qualified escrow.
Identification Deadline
Written identification of replacement properties must be provided.
Exchange Complete
Replacement property acquisition must close. Exchange funds disbursed.
Important Note
The 180-day period runs concurrently with the 45-day identification period, not after it. These deadlines cannot be extended except in cases of presidentially declared disasters.
Fee Schedule
Transparent pricing for forward exchange services based on the sale price of your relinquished property.
Forward Exchange Fees
Based on relinquished property sale price
All fees include:
- Unlimited telephone conferences
- Qualified Escrow Account with Columbia Bank
- Dual signature requirement for fund release
- Account reconciliation letter
- All interest on exchange funds belongs to client
Ready to Start Your 1031 Exchange?
Contact us for a free consultation to discuss your specific situation and how we can help.