A look into what a 1031 exchange is and how Monarch Title Company can help you file them.
Now, you might be wondering “What in the world is a 1031 exchange?” and “Why do I have to go through my title company for this?” These are common questions to have, so we’ll break it down for you throughout this blog.
What is a 1031 exchange?
To put it simply, a 1031 exchange trades one investment property for another. If a 1031 exchange is successful, the investor will have the opportunity to sell or reinvest the property, while lowering or deferring capital gains tax. A tax accountant or attorney familiar with 1031 exchanges can advise as to the type of properties that qualify as well as how the process will work when you file your taxes the following year.
A Title Company’s Part
If you’re wondering what role a title company plays in the process of a 1031 exchange, you’ve made it to the right section. A 1031 exchange is required to go through a qualified intermediary. At Monarch Title, we are that intermediary, and as this role, we will assist in the preparation of the 1031 exchange documents, hold and disburse exchange funds during the transaction, coordinate the exchange with all parties involved, including your escrow and closing agents. As the intermediary, we make sure that everything is filled out and filed correctly, so you don’t have to worry about mishaps down the road.
If you’re looking for a 1031 exchange, come to Monarch Title. We’re here to help you file everything correctly, and answer any questions you might have during the 1031 exchange process.