1031 Exchange Properties in Chicago, Illinois
Chicago businesses and individuals use 1031 exchanges as a tax deferral strategy when selling real held for investment or for use in a business. The Internal Revenue Code Section 1.1031 defers federal capital gains and recaptured depreciation taxes when replacement property is acquired within 180 calendar days of the old property sale.
The Certified Exchange Specialist on staff at Atlas 1031 has been providing 1031 exchange qualified intermediary services for professional advisers and their clients in and around Northeast Illinois and Chicago since 2003. Many of our clients are foreign non resident aliens and companies. Foreigners can defer US federal capital gains taxes but must follow the FIRPTA requirements when selling real estate.
1031 Exchange Properties
All 1031 exchange properties share common themes and follow similar 1031 exchange rules. The intent is holding the real property for investment or for business use implying minimal personal use. Hold time is typically a minimum of one to two years to reflect intent to hold the property for investment rather than a flip for profit, though the shorter the hold time, the more substantial the facts. If a rental property, a good fact pattern includes the property being included in a rental pool, itemizing the property on Schedule E of the federal tax return and no more than fourteen overnights per year or 10 percent of the days rented annually for personal use. A partial list of 1031 exchange properties is as follows:
Each 1031 exchange is carefully managed depositing 1031 exchange proceeds from the sale of the relinquished or old property into non commingled, interest bearing accounts insured by FDIC. Either a qualified escrow account or personal identification number (PIN) or dual signatures is required to to disburse funds. Atlas 1031 maintains a $250,000 Errors and Omissions policy