TRANSFER EXCHANGE, INC. is a Qualified Intermediary for tax-deferred exchange transactions, as defined by Internal Revenue Code Section 1031.
Robert C. Skidmore, Esq. President
Lee T. Skidmore, Esq. Vice President
About us
1031 Exchange Medina
TRANSFER EXCHANGE, INC. is a Qualified Intermediary for tax deferred exchange transactions, as defined by Internal Revenue Code Section 1031.
TRANSFER EXCHANGE, INC. was incorporated in 1997 to meet the increasing needs of exchanges in the Medina area and has quickly developed a reputation for great Service & Integrity
TRANSFER EXCHANGE, INC. is able to offer the highest level of safety and security. Each exchanger’s proceeds are deposited locally in separate bank accounts. The exchanger is able to keep all interest derived from the account which is applied at the conclusion of the exchange.
1031 Do’s and Don’ts
- DO advanced planning for the exchange. Talk to your accountant, attorney, broker, lender and Qualified Intermediary.
- DO NOT miss your identification and exchange deadlines. Failure to identify within the 45 day identification period or failure to acquire replacement property within the 180 day exchange period will disqualify the entire exchange. Reputable Intermediaries will not act on back-dated or late identifications.
- DO NOT plan to sell and invest the proceeds in property you already own. Funds applied toward property already owned purchase goods and services, not like-kind property.
- DO attempt to sell before you purchase. Occasionally Exchangers find the ideal replacement property before a buyer is found for the relinquished property. If this situation occurs, a reverse exchange (buying before selling) is the only option available.
- DO NOT dissolve partnerships or change the manner of holding title during the exchange. A change in the Exchanger’s legal relationship with the property may jeopardize the exchange.
Reasons to Exchange
- Cash Flow: Exchange land for improved property.
- Appreciation: Exchange commercial property for single family rentals that appreciate faster.
- Easier Sale: Exchange for a property that is easier to market and sell.
- Less Management: Exchange rentals for raw land or for property that can be professionally managed.
- Better Location: Exchange property from a run-down location to a better location.
- Accomplish Goals: Exchange one large property into multiple properties to leave for heirs.
EXCHANGE TERMINOLOGY
- Assignment Agreement – A document used to transfer contractual rights (but not necessarily obligations) to a third party. Often used to assign the Purchase/Sales Contract between the exchanger, the Qualified Intermediary and either the buyer or seller.
- Basis – Method of measuring investment in an investment property for tax purposes. The following formula provides an approximate estimate of the adjusted basis: [Purchase Price + Improvements] – Depreciation Deducted = Adjusted Basis.
- Boot – Fair market value of non-qualified (not like-kind) property received in an exchange. Examples: cash, notes [seller financing], furniture, supplies, reduction in debt obligations.
- Capital Gain/Loss – The increase (or decrease) in the amount received from a sale or exchange over the adjusted basis of the property.
- Constructive Receipt – A term referring to the control of proceeds by a taxpayer even though funds may not directly be in their possession.
- Exchange Agreement – A document used to establish the contractual relationship between the parties to an exchange which restricts the Exchanger’s access to the exchange funds and outlines the responsibilities of the Qualified Intermediary.
Exchange Fees
Deferred Exchange
$1,200
$1,200
Exchanges over $1 million
$2,750
$2,750
Note
Reverse, improvement, and partnership dissolution exchanges are referred out.