LM Exchange - 1031 Exchange Services
1031 Exchange Services
At LM Exchange, our clients will enjoy the benefits of a seamless and transparent transaction by keeping more of their real estate transactions under the same roof. You will be able to work with the same attorneys you have come to trust at LM Title as well as have access to knowledgeable CPAs that can help answer those tricky tax questions.
Let us know how LM Exchange to help you today.
Benefits of LM Exchange
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Smooth execution of the 1031 exchange, minimizing obstacles and maximizing operational effectiveness.
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Continuous communication with clients and advisors, providing regular updates on transaction schedules, available funds, and other relevant details throughout the entire 1031 exchange process.
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Subject matter expert attorneys and certified exchange specialists readily accessible and available for consultation at anytime.
What is a 1031 Exchange?
A 1031 Exchange serves as a tax deferral mechanism, enabling sellers of eligible real estate to postpone taxes on their transaction, encompassing Capital Gains, Depreciation Recapture, and Net Investment Income Tax. This deferral is contingent upon utilizing the proceeds from the sale to acquire other qualifying real property. Compliance with various prerequisites is necessary to ensure a valid 1031 Exchange.
What is the role of a Qualified Intermediary?
A Qualified Intermediary ensures adherence to IRC 1031 requirements for a legitimate 1031 Exchange. This encompasses the following responsibilities:
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Procures the relinquished property from the Exchanger and transfers it to the Buyer.
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Ensures that the Exchanger does not directly or indirectly receive any funds from the sale of the relinquished property.
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Acquires the replacement property from the Seller and transfers it to the Exchanger.
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Designs the exchange structure in accordance with IRC 1031 guidelines.
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Prepares all pertinent documentation associated with the exchange.
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Monitors the exchange progress and provides instructions to the Exchanger to ensure ongoing compliance throughout the process.