1031 Exchange

American Invsco Realty offers 1031 Exchange services for investors. Our proven expertise, high performing product and streamlined approach, has made us a natural choice when it comes to 1031 exchanges. Working in tandem with our well-established and secure Qualified Intermediaries, we guarantee to facilitate your exchange with speed, security and integrity. Our top priority is to help you preserve and enhance your real estate investment portfolio. For more information please contact one of our Realtors at any of our offices.

Tax Deferring and Wealth Building Strategy

The tax deferred exchange, as defined in Section 1031 of the Internal Revenue Code of 1986, as amended, offers investors one of the last great opportunities to build wealth and save taxes. By completing an exchange, the investor (Exchanger) can dispose of their investment property, use all of the equity to acquire a replacement investment property, defer the capital gain tax that would ordinarily be paid, and leverage all of their equity into the replacement property.

Two requirements must be met to defer the capital gain tax:

• The Exchanger must acquire "like kind" replacement property.

  And

• The Exchanger cannot receive cash or other benefits (unless the Exchanger pays capital gain taxes on this money).

In any exchange, the Exchanger must enter into the exchange transaction prior to the close of the relinquished property. The Exchanger and the Qualified Intermediary enter into an Exchange Agreement, which essentially requires that:

• The Qualified Intermediary acquires the relinquished property for the Exchanger and the transfers it to the buyer by direct deed from the Exchanger.

  And

• The Qualified Intermediary acquires the replacement property from the seller and transfers it to the Exchanger by direct deed from the seller. The cash or other proceeds from the relinquished property are assigned to the Qualified Intermediary and are held by the Qualified Intermediary in a separate and secure account. The exchange funds are used by the Qualified Intermediary to purchase the replacement property for the Exchanger.

Exchange Programs

American Invsco Realty and the 1031 Exchange Consultants considers each type of 1031 exchange program to best serve your individual requirements. With the cooperation of the Qualified Intermediary, we will assist in all tax advantaged programs available.

Two Most Commonly utilized are:

Delayed Exchange

The Delayed Exchange results when there is a time delay between the sale of the relinquished property and the purchase of the replacement property. It is the most frequently utilized 1031 tax planning strategy.

Delayed Exchange Guidelines

• Exchanger must identify the replacement "like kind" property within 45 days of the close of the relinquished property, and purchase and close on the replacement property within 180 days once the relinquished property is sold.
• Timeframes run simultaneously. It is often the timeframes that seem to keep investors out of the 1031 exchange process.

Consult with one of our Realtors who will work with our 1031 Exchange team to expedite the exchange process.

The Reverse Exchange

The Reverse exchange results when the replacement property is acquired prior to the sale of the relinquished property.

• Allows investors up to 45 days to identify one or more relinquished properties.
• Like the Delayed Exchange, the Reverse Exchange must be completed within 180 days.
• * Each of these methods has various nuances that will be discussed and outlined by American Invsco Real Estate Consultants, 1031 Exchange Consultants and the Qualified Intermediary.

American Invsco Realty, Inc. cannot provide advice regarding specific tax consequences. Investors considering an Internal Revenue Code Section 1031 tax deferred exchange should seek the counsel of their accountant and attorney to obtain professional and legal advice.