HEY IF YOU ARE NOT ON THE INSIDE YOU ARE ON THE OUTSIDE SO GET THE INSIDE SCOOP ON 1031 EXCHANGE FROM THE MARIE FLAVIN = THE BEST IN THE BUSINESS!!
GORDON GEKKO WALL STREET MICHAEL DOUGLAS
COMMON 1031 MYTHS
There are countless myths and misconceptions about 1031 exchanges. What follows are a few of the myths heard over and over again in our offices. Here we attempt to set the record straight.
Myth #4 – You don’t need an exchange company for a simultaneous exchange. – Not true!
Taxpayers think if they can just sell and purchase the same day, in the same settlement office, they have an exchange without the expense of an exchange company. Hey, they never touched the money!
Unfortunately with this strategy, although they didn’t “touch” the money, they “controlled” the money by instructing the settlement agent to transfer the sale proceeds from one file to another. Control of funds is as fatal to this being a valid exchange as touching the cash would have been. They need an exchange company to document the two transactions as being part of an exchange and to provide the instruction to transfer between the two files.
Myth #5 – The Buyer (or Seller) has to cooperate. – Not really.
In a typical delayed exchange the Buyer of the relinquished property and the Seller of the replacement property do not have to do anything in order for the Taxpayer to have an exchange. The IRS rule is only that the Buyer/Seller be notified of the exchange, in writing, prior to closing. Notice only. They don’t have to cooperate. They don’t have to sign anything. They can’t stop the Taxpayer from proceeding with the exchange.
Marie C. Flavin, Esq.
Northeast Regional Manager
(877) 230-1031 Toll Free