Texas 1031 Exchange Properties
Texas is a strong 1031 exchange market for real and personal investment property held for use in business or investment. Atlas 1031 accommodates clients both domestic and foreign, individuals and companies facilitating an Internal Revenue Service recognized tax deferral strategy section 1.1031 of the IRS code. Federal and state if applicable though not in Texas, capital gains and recaptured depreciation taxes are deferred when replacement property is acquired within 180 calendar days of the old property sale.
The Certified Exchange Specialist on staff has provided 1031 exchange qualified intermediary services for professional advisers and their clients in Texas since 2003. Texas 1031 exchanges represent many of our like-kind exchanges with prior local offices in Dallas and Houston. Foreign individuals and companies also defer US federal capital gains taxes by following FIRPTA requirements when selling real estate. Atlas 1031 has substantial experience working with FIRPTA filings, regularly assisting professional advisers and escrow companies to understand and file the required forms to eliminate the holding requirement.
Texas 1031 Exchange Properties
A partial list of 1031 exchange properties including real and personal property follows. Each property share similar intent to hold for investment or business and a fact pattern supporting the intent. Hold time is one of many facts. The Internal Revenue Code 1.1031 does not qualify a hold time. Twice in the 90's Congress attempted to legislate a minimum hold time. It is commonly believed that the longer the hold time the better. One year and a day qualifies for long term capital gains tax treatment versus ordinary income rates for shorter holds. Either a one year and a day to two years is the typical response for a suggested conservative hold time. Minimal personal for vacation property should be no greater than 14 overnights per year or 10% of the time rented. Revenue Procedure 2008-16 should be reviewed if holding vacation property.
1031 exchange properties in Texas range from ranches to oil and gas interests. Companies owning 100 or more assets that are routinely replaced should consider a LKE of Like-Kind Exchange program that is similar to a fixed asset application but matches assets sold and replaced and handles the tax reporting requirements.
Each 1031 exchange is carefully managed, following 1031 security and transparency procedures, depositing exchange proceeds into non commingled, interest bearing accounts insured by FDIC. Atlas 1031 maintains a $250,000 Error and Omissions Insurance policy. Either a qualified escrow account or personal identification number (PIN) known only by the Exchangor and bank are used to insure Exchangor authorization on all disbursements.
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