"Working with Atlas 1031 through this six month process was a pleasure. We were not familiar with the workings of a reverse 1031 exchange and Mr. Andy Gustafson's assistance and guidance in this process was invaluable. We trusted Atlas 1031 with substantial responsibilities to pay vendors, hold our properties and account for the funds entrusted to them. We found working with Atlas 1031 on this transaction problem free and Mr. Gustafson's interactions with our various stakeholders professional, responsible and meeting the highest standards of trust and accountability."
This 1031 improvement exchange started with a call from Jake Sturman, Senior Vice President for Jones Lang LaSalle in Indianapolis who found Atlas 1031 on the web. He asked a number of questions about Atlas 1031 and the steps of a 1031 improvement exchange. He called later to ask a few more questions and said he would ask his client call to discuss their interest in a 1031 exchange.
SerVaas Laboratories Inc.
Paul SerVaas, President of SerVaas Laboratories, Inc. called to introduce himself, explained their potential commercial transaction and interest in learning more about an improvement 1031 exchange. We later met with his Executive Vice President Matt Selig, attorney and CPA to discuss the details of a 1031 improvement exchange.
SerVaas Laboratories is a family owned business that amongst other businesses manufacturers Bar Keepers Friend, a well known household cleanser manufactured in Indianapolis since 1882.
1031 Improvement Exchange
Their intent was to sell two commercial buildings and replace with a renovated commercial building providing office space and manufacturing facilities for Bar Keepers Friend.
- The exchange was underway with the acquisition of their new facility titled to an Exchange Accommodator Titleholder (EAT).
- While titled to the EAT, improvements were made, contractor invoices paid weekly by the EAT with funds provided by SerVaas Laboratories.
- Near the 180th calendar day, the two commercial buildings were sold and the improved replacement property was conveyed to SerVaas Laboratories from the EAT.
The 1031 exchange effectively deferred the capital gain and recaptured depreciation of the two commercial buildings. This strategy of parking the replacement or relinquished (old) properties with an EAT is typical of a reverse 1031 exchange
"Andy successfully completed the rigorous IRS 1031 exchange formalities that allowed us to sell our old building while delaying the capital gains tax due on this sale until our new building is eventually sold."
Paul SerVaas Matt Selig
President Executive Vice President
SerVaas Laboratoris Inc.