1031 Exchange Properties in Columbus, Ohio
Columbus, Ohio and surrounding communities have experienced a steady increase in 1031 exchanges due to appreciation in the value of real held in a business or trade or for investment. Typcial property exchanged includes single family residential, commercial buildings and farmland.
Understanding the tax consequences of a 1031 exchange when selling investment property can provide additional operating capital for acquiring replacement property. Partial 1031 exchanges are acceptable, though there is a point when 50 percent or more is taken as cash where the tax on the equity boot or cash does not make sense to initiate a 1031.
The Certified Exchange Specialist on staff at Atlas 1031 has been providing 1031 exchange qualified intermediary services to professional advisers and their clients both individuals and companies, domestic and foreign in Columbus, Ohio since 2003.
1031 Exchange Properties
1031 exchange properties share similar intent and facts to support theproper intent to hold in a business or for investment. Hold time is typically one to two years, though shorter hold times are acceptable. The Internal Revenue Code does not state a specific hold time, though Congress attempted twice in the 90's to legislate a minimal one year hold time. Personal use must be held to a minimum. In the case of vacation property, Revenue Procedure 2008-16 stipulates no more than 14 overnights per year or 10 percent of the annual rental time. The procedure also requires a two year minimum hold time on both the old and new properties effective March, 2009 for the Internal Revenue Service to not challenge whether the vacation home qualifies as an investment under IRC Section 1031.
Each 1031 exchange is meticulously managed depositing 1031 exchange proceeds into non commingled, interest bearing accounts insured by FDIC. Either a qualified escrow account requiring a dual signatures or a personal identification number known only between the Exchangor and the Bank is used to authorize exchange fund disbursement.
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