Golden Lion 1031 Exchange Services

Types of 1031 Exchanges

Golden Lion Capital Investments can help guide you through various types of 1031 exchanges, depending on your specific investment strategy and needs. The most common types of exchanges include:

Forward Exchange

A forward exchange is the most widely used form of a 1031 exchange. In a forward exchange, the investor sells their existing property first and then uses the proceeds to acquire a replacement property. The IRS requires that the replacement property must be identified within 45 days of the sale of the original property, and the acquisition must occur within 180 days.

Reverse Exchange

A reverse exchange allows investors to purchase the replacement property before selling the original property. This is ideal for investors who have found the perfect property but have not yet sold their existing one. The reverse exchange can be more complex, as it involves specific guidelines set by the IRS to ensure the transaction remains tax-deferred.

Improvement Exchange

An improvement exchange allows an investor to use some of the proceeds from the sale of their original property to make improvements to the replacement property. This option is beneficial when you want to increase the value of the replacement property or make improvements that were not included in the original purchase price.

Golden Lion Capital Investments: Your 1031 Exchange Partner

At Golden Lion Capital Investments, we provide comprehensive 1031 exchange services, ensuring that every step of the process is handled professionally and efficiently. We offer a range of services designed to streamline the exchange process while ensuring compliance with IRS rules. Our experienced team will guide you through the following steps:

Consultation and Strategy

Our process begins with an in-depth consultation where we discuss your investment goals, current portfolio, and future objectives. We will help you determine the best type of 1031 exchange that aligns with your goals. Whether you are looking to diversify your holdings or leverage tax deferrals to acquire additional properties, we will create a customized strategy tailored to your specific needs.

Qualified Intermediary (QI) Services

As a trusted partner in your 1031 exchange, we work with qualified intermediaries (QI) to facilitate the transfer of funds between the sale of the relinquished property and the purchase of the replacement property. The QI ensures compliance with IRS regulations by holding and transferring funds, preventing the investor from taking direct control of the funds during the exchange.

Replacement Property Identification

Finding the right replacement property is crucial to the success of your 1031 exchange. We help you identify suitable like-kind properties that meet your investment goals and criteria. You must identify potential replacement properties within 45 days of the sale of the original property, and we provide guidance to help you make informed decisions.

Documentation and Compliance

The 1031 exchange process requires extensive documentation to ensure compliance with IRS rules. We handle the paperwork, including the identification of replacement properties and the necessary exchange agreements. Our team ensures that everything is properly documented to maintain the integrity of the exchange and avoid any tax liabilities.

Key Deadlines in a 1031 Exchange

It's essential to understand the critical deadlines associated with a 1031 exchange to ensure that your transaction remains tax-deferred. These deadlines are strict and must be adhered to in order to maintain eligibility for the exchange.

45-Day Identification Period

After the sale of the relinquished property, you have 45 days to identify potential replacement properties. This period begins on the day you close the sale of the original property. You can identify up to three properties, or more, depending on specific guidelines.

180-Day Exchange Period

From the date of the sale of the relinquished property, you have 180 days to close on the purchase of the replacement property. This is the total timeframe in which the entire exchange must be completed, including the identification and acquisition of the new property.

Eligible Properties for 1031 Exchange

Not all properties qualify for a 1031 exchange. The IRS only allows for the exchange of like-kind properties, meaning the properties involved must be of a similar nature or character. Common eligible properties include:

Investment Real Estate

Real estate properties held for investment purposes, such as rental properties, multi-family units, and commercial buildings, are eligible for 1031 exchanges.

Vacant Land

Vacant land that is held for investment purposes or business use can also qualify for a 1031 exchange.

Commercial Properties

Commercial properties, including office buildings, retail centers, and industrial properties, are eligible for 1031 exchanges when held for business or investment purposes.

Residential Properties

Residential rental properties that are held for investment are eligible for a 1031 exchange. However, primary residences and vacation homes do not qualify.