International 1031 Exchange - Capital Gain Tax Planning Strategy for Global Taxpayers
Do you own real property outside the US held for productive use in a trade, business or investment? Are you considering selling and deferring the US federal and state capital gains tax consequences? Is your intent to replace with like-kind real property within 180 calendar days of the initial closing and replace with property held outside the US? Allow us to accommodate a 1031 exchange and defer the US capital gains tax.
The same 1031 exchange rules for US based real and personal property exchanges apply to exchanges of internationally held property for like kind international property. However, property held in the US is not considered like kind with property held predominantly outside the US.
The challenge is to hold the exchange funds or net equity locally versus converting to US Dollars, wiring to a US bank and converting back to sovereign currency. Given the escrow account or disbursement authorization procedure satifies the (g)6) constructive receipt requirements of the 1031 code the exchange proceeds can be held locally. Additionally, the use of an escrow account agreement that requires dual signatures for disbursement, one from the client and one from Atlas 1031 Exchange assures that funds cannot be moved without the client's signature.
1031 exchanges have been completed with real property sold in Belize, England, India, Israel, New Zealand and Australia.Atlas 1031 Exchange has accommodated exchanges in Israel and Australia. Contact us for more information.
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