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1031 Exchange

Although most tax shelters have been abolished, the tax deferred exchange remains as a valuable option. Through this process, an individual can continue their investment by selling one property, known as the relinquished property or first leg, and using the proceeds to purchase another property, known as the replacement property or second leg. The Internal Revenue Code § 1031 allows for the deferral of the capital gains tax by reinvesting in a similar "like-kind" property. This enables the taxpayer to reinvest the full amount of the sales proceeds without paying any capital gains tax.

To qualify for a tax deferred exchange under §1031, certain requirements must be met once the relinquished property has been transferred. The taxpayer must identify a like-kind replacement property within 45 days from the first closing and close on the replacement property (or properties) within 180 days of the closing of the relinquished property.

Additional Services

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Virtual Escrow

Virtual Escrow

Definition: While Escrows For You is centrally located in the Burbank Area, we provide the convenience of a virtual escrow service, allowing you to complete the necessary transactions from the comfort of your own home.

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Commercial & Industrial

Commercial & Industrial

Definition: The purchase or sale of a property that is zoned for commercial or industrial use is known as a commercial transaction. These transactions can be particularly challenging, making them some of the most complex real estate deals to finalize.

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Residential Resale

Residential Resale

Definition: The process of buying or selling a previously owned home.  We recognize that every transaction is distinct and necessitates the full attention of a committed team of escrow professionals!

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