18A — March 15 - 28, 2013 — 1031 Exchange — Mid Atlantic Real Estate Journal
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1031 E XCHANGE
Eastern 1031 Starker Exchange, LLC Selling investment property? Why pay taxes!
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magine selling business, trade or investment property, or even land, acquiring new real estate of any type and possibly defer- ring all federal capital gains tax, depreciation recapture tax, and, and in some states, the state capital gains tax. Many investors are profiting every day simply by using the exchange process. A 1031 Tax Deferred Ex- change is also known as: Starker Exchange, Like-Kind Exchange and a 1031 Ex- change, The idea behind the
concept of an I.R.C. Section 1031 Exchange is to allow an investor to continue your
nal Revenue Code provides that no gain or loss shall be recognized on the exchange
by which a property owner trades one or more relin- quished properties for one or more replacement properties of “like-kind”. A Qualified Intermedi- ary (QI) is the professional provider of the mandatory mechanics of an exchange. The use of a QI, as an inde- pendent party to facilitate a tax-deferred exchange, is a safe harbor established by the Treasury Regulations. Without a QI, and pursuant to an exchange agreement, the IRS may not define a
transaction as an exchange, thereby making it ineligible for tax deferment status. “Like-kind” does not refer to the nature, character or type of property. Instead, it addresses the intended use of the property. Provided the property is initially acquired and held for either business, trade or investment purposes, it can qualify as a suitable replace- ment property under I.R.C. Section 1031. All real estate is considered to be like/kind to all other real estate, assuming both relinquished and replace- ment property are held for a qualifying use. The following can be con- sidered “like-kind” property exchanges: Residential for commercial; • Single family rental for multi family rental; • Professional offi ce for a Mountain cabin and land in which exchanger intends to rent; • Non income providing raw land for income produc- ing rental property; • An apartment building for an office building. Eastern 1031 Starker Exchange provides a fully documented, meticulously prepared complete exchange, individual escrow accounts and support. Every exchange we ac- commodate includes at no additional charge an individ- ual exchange escrow account held in the exchangers name and Eastern 1031 Starker Exchange, as agent. Each escrow account is FDIC in- sured and verification of the deposit into the individual escrow account is provided to the exchanger. Funds are never reinvested! We are bonded and insured and a member of the Better Business Bureau with an A+ Rating. Eastern 1031 Starker Ex- change, L.L.C. works on a Nationwide Basis and we will provide you and your exchange unparallel commit- ment and dedication to make your exchange a succe$$!! Our exchange counselors are availableMonday through Saturday, 9 A.M. until 9 P.M. E.S.T. Call us today! Toll free at 717-308-1031. Call today for one of our free 1031 ex- change booklets! ■
Eastern 1031 Starker Exchange provides a fully docu- mented, meticulously prepared complete exchange, indi- vidual escrow accounts and support. Every exchange we accommodate includes at no ad- ditional charge an individual exchange escrow account held in the exchangers name and Eastern 1031 Starker Exchange, as agent.
investments, without the loss incurred by paying federal capital gain tax. Section 1031 of the Inter-
of property held for produc- tive use in a business, trade or for investment. A tax-de- ferred exchange is a method
P: 717-308-1031 E: starkerexchange@aol.com www.eastern1031starkerexchange.com
Performs 1031 Tax Deferred Exchanges For Investors Who Are Selling Business, Trade Or Investment Properties. Eastern 1031 makes Starting an Exchange a simple process using simple straight forward language. Eastern 1031, as your Quali?ed Intermediary, will guide you every step of the way, from preparing instructions for the firm holding settlement of your Relinquished Property (property exchanger wishes to sell) through settlement of the Replacement Property or Properties to complete your exchange. Eastern 1031’s experience will guide you through a $uccessful exchange with no out of pocket expenses, and no hidden fees. The most important Benefit is to be able to continue your investment without loss of money to Federal Capital Gain Taxes and without loss to Federal Depreciation Recapture Tax. By using the tax shelter provided by Treasury Regulation Section 1031, you can build your portfolio net worth much faster than would be possible by selling your business, trade or investment property and reinvesting with your funds remaining after paying Federal Capital Gain Taxes and Federal Depreciation Recapture Taxes.
• Monday through Saturday from 9 AM to 9 PM • Free Consultations • Same Day Document Preparation Available • Individual FDIC Insured Escrow Accounts for Each Exchanger • Member of the Better Business Bureau • Member of the Federation of Exchange Accommodators • Bonded and Insured • A Non Reinvesting Company
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