1031 Financial Exchange 1031FEC
1031 721 1033
www.1031FEC.com Exchange Consultants
Matching Clients with Premium Income Investments of Agriculture, Commercial & Energy Properties for 1031 Exchange
and Direct Purchase
FOR A FREE CONSULTATION CONTACT US or PHONE 800.333.0801
Since the 1980’s Financial Exchange – 1031FEC has assisted income property owners to efficiently transfer assets. IRS Sections 1031-1033-721-1035 and 1036 exchanges are among alternatives considered by a 1031FEC Consultant (Tax Advantaged Specialist). Perpetual tax efficient trusts, tax efficient retirement plans and ownership of premium tax efficient property can assist to minimize tax while assisting income and asset growth. Stock issue/transfer and insurance finance can be significant.
1031FEC Property Exchange Time-Line Outline
1) Contact 1031FEC consultant to visit about potential property sale and pre-sale planning.
2) Learn 1031FEC alternatives to save owner tax and improve income and/or appreciation.
3) Owner-seller to advise tax advisor/CPA of intent to sell, and 1031FEC alternative solutions.
4) Owner promotes active marketing and selling of owner’s original property.
5) When property offer received (place notice for potential exchange in offer) owner engages 1031 Qualified Intermediary (QI) (1031FEC can assist with QI list for owner choice).
6) With 1031FEC consultant assistance owner completes 1031 QI documents.
7) Owner visits with 1031FEC consultant about property exchange goals including owner’s personal, family, financial needs and estate planning goals.
8) With 1031FEC Consultant and 1031 QI assistance owner closes the sale of original property. Funds from owner’s closing transferred to QI escrow account.
9) With 1031FEC assistance owner does examination and comparisons of prospective new property/properties (include tax advisor/CPA for tax detail consultation).
10) Owner chooses new property/properties and identify to QI within 45 days of closing.
11) With 1031FEC Consultant, 1031 QI assistance and new property seller complete exchange qualification, purchase and closing documents within 180 days of closing or first tax due date.
12) With 1031FEC Consultant, 1031 QI assistance and new property seller complete exchange property closing. QI transfers sold property funds from escrow account to new exchange property seller. Closing is completed.
13) Within 30-60 days of closing income flow is generally generated to owner.
14) Generally within 30-60 days of closing new recorded deeds received by owner.
15) 1031FEC periodically contacts owner to assure income received and to answer questions when desired.
16) 1031FEC continues to monitor income, current property values and market advantages.
Increase monthly income with a Triple-Net *Master Lease.
After you purchase a premium
income property with
the assistance of
many properties have the
15 to 25-year triple-net master lease
that provides you with an
escalating rate of return. This escalation occurs by increasing the rent
payments each year for the entire duration of the 20-year lease.
Current income rates are approximately 5 1/2% - 8% with some with lease
escalation clauses to allow income of over 12%.
Appreciation is yours
non-cancelable, long-term, flat rate leases means no cap on appreciation.
Unlike other triple-net leases, under the
triple-net *master lease, the potential appreciation of your real property benefits
you and not the triple-net lessee.
The triple-net *master lease is backed by substantial real estate ownership and management company with years of experience, and control or involvement in $millions of real estate assets. You can join more other satisfied real estate investors that have come to a master lessee to fill their 1031 exchange and other real estate investment needs. The Seller is backed by this master lessee with years of 1031 experience.
Add Real Estate and its Income to an investment portfolio. Future investment portfolios may consist of up to 1/3 qualified real estate investments to assist to maintain portfolio value by diversification. Experienced real estate investors may be successful with more than 1/3.
One receives an excellent return on investment that increases. When a owner passes, the real estate goes to beneficiaries at the new current basis that allows a beneficiary to sell with no taxable gain. Or, 1031FEC has another property to exchange that will defer and save tax due.
One receives the real estate depreciation to help relieve income tax. 1031FEC can find qualified straight line depreciable and accelerated depreciable real estate investments.
*A Master Lease is not for all clients and may not be available in all areas. You and your tax advisor or CPA invited to consult and confirm. Contact 1031FEC for business planning assistance.
Use Real Estate Depreciation to reduce current tax burden. Use our (PCSS) Property Cost Segregation Study to become more efficient and reduce taxation.
What is a Cost Segregation Study?
A Cost Segregation Study (CSS) (a.k.a. Cost Segregation Analysis) is a financial and engineering-based analysis of all expenditures associated with a property. The objective of the cost segregation study is to properly separate and classify capital expenditures using the shortest life possible based upon IRS specifications and current case law. The cost segregation study uses IRS prescribed engineering based methods to quantify and value assets and place them into their proper asset category. The end result of the cost segregation study is a reclassification of assets that allows for accelerated depreciation and improved cash flow on your property.
Cost Segregation Can Reduce Taxes and Improve Cash Flow
Common Situation for CSS
The depreciable assets in a commercial property are many times categorized
with a depreciable life of 27.5 years.
Solution - A Cost Segregation Study (a.k.a. Cost Segregation Analysis or Study)
A well designed cost segregation study conducted by trained and experienced
tax and engineering professionals will provide for the proper identification
and re-classification of your properties' capital assets.
How Cost Segregation Study
Apartment complex is purchased for $4,000,000.Owners allocate $400,000 of purchase price to non-depreciable land, and depreciate the remaining $3,600,000 over 27.5 years as commercial real property.
The CSS study reveals that 5% ($180,000) of building costs are allocated to
7 year property and 15% ($540,000) to 15 year property.
Pay No Tax - Properly Structured 1031 Tax Free Gain and Tax-Free Income
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