1031 TAX-DEFERRED PROPERTY EXCHANGES
WE’RE IN THE BUSINESS OF PROVIDING PIECE OF MIND.
Strength. Old Republic Exchange is a wholly owned subsidiary of the Old Republic International Group of companies. The Old Republic Title Insurance Group has earned the highest rating awarded to a title insurer from Standard & Poors.
Service. At each of our locations across the country, our knowledgeable staff specializes in understanding your individual needs in the 1031 property exchange process. We provide complete and concise exchange documentation in hours if necessary.
Security. When you choose Old Republic Exchange, an affiliate of one of the nation’s largest insurance companies, you have the confidence of knowing our financial strength and "customer-first" service, help to preserve the security of your transaction.
MAXIMIZE YOUR PROFIT, NOT YOUR TAXES. HERE’S HOW.
If you have taken on an investment property, or if you have a property that has increased in value, you may face substantial capital gains taxes. Section 1031 allows you to defer the tax by exchanging the piece of property for another, providing both parcels are either used in trade or business, or held as investments.
The tax deferred exchange preserves the net proceeds. You can then reinvest the money and continue to realize returns instead of losing a significant portion of the profits to taxes.
| |
Sale |
Exchange |
| Proceeds |
$100,000 |
$100,000 |
| |
|
|
| Estimated State and Federal Taxes (30%) |
$30,000 |
$0 |
| |
|
|
| Proceeds Available for reinvestment |
$70,000 |
$100,000 |
Old Republic Exchange Facilitator Company assists you at every stage of the exchange process. Old republic gathers all of the necessary documentation from the exchanging parties, agents, and escrow officers; stays abreast of Treasury regulations; and acts as a qualified intermediary to help you complete the exchange smoothly and efficiently.
If you’ve invested in a property, or plan to invest, a 1031 exchange allows you to put your profits to work.
IF YOU ARE CONSIDERING A TAX-DEFERRED EXCHANGE, FOLLOW THESE GUIDELINES
•First, discuss the exchange with your accountant, financial advisor, and attorney.
•When you are ready to proceed, call Old Republic Title to facilitate the exchange.
•Be sure to include appropriate language in your sale contract. For example:
"Buyer herein acknowledges it is the intention of Seller to create an IRC 1031 tax exchange and Seller’s rights and obligations under this agreement may be assigned to Old Republic Exchange Facilitator Company to facilitate such an exchange. Buyer agrees to cooperate with Seller to qualify in a manner necessary to enable Seller to qualify for said exchange at no additional cost or liability to Buyer."
•Begin the search for your replacement property or properties.
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Close of Escrow Exchange Period Begins
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45 Days after Closing Replacement Property Identified
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Within 180 Days, Close on Replacement Property
The replacement property must be acquired on or before the earlier of the following dates: 1) 180 days from the date of the close of the relinquished property, or 2) the tax filing date for the taxable year in which the transfer of the relinquished property occurred.
For more information, please call Old Republic,
The tax-deferred exchange experts, at (415) 394-7676
The information set forth herein is intended as an overview of IRC 1031 tax-deferred exchanges and should not be construed as legal, financial, or tax advice. Every investor should consult his or her own counsel regarding the use of a 1031 exchange.
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