Re/MAX Central helps investors locate and purchase 1031 Exchange Las Vegas real estate – we understand the limited time constraints associated with identifying and closing a 1031 Exchange and we know how to expedite the identification and transaction cycles so that you can avail yourself of this investment strategy.

The 1031 exchange offers much more than favorable tax benefits to a sophisticated investor. It can also be utilized as a means of strategic investment planning. The sophisticated investor can use a 1031 exchange to reach beyond tax deferment and fulfill a broader financial strategy that fits his or her investment needs. As an example, an investor might exchange into a property with a superior location, easier management and or improved cash flow, which enables you to leverage the financial transaction more.

Re/MAX Central also works closely with several top tier law firms in the Las Vegas area – you will want to avail yourself of their services as part of the transaction to have them complete the legal documents that are required by the IRS to qualify for a 1031 Exchange. And, we will work closely with you to facilitate the introduction and/or assist in managing the relationship.

The Qualified Intermediary
The Qualified Intermediary is the third party who temporarily holds the funds and property during the exchange period typically in an escrow account – this firm affects the three way trade or change of properties and funds and handles all necessary paperwork to facilitate the process. You cannot receive or hold the cash from the sale of the relinquished property.

The Intermediary must hold the funds until the replacement property is identified and the transaction is completed in the allotted 180 day period (see below for details on timeline).

What is the Like Kind Requirement?
For a real estate transaction, like kind refers not in the actual nature or quality of the property itself but to the underlying definition of real estate under Nevada state law. You can exchange from property held for investment into other property held for investment – property held for business use can be exchanged into other property held for business use.

For some examples you can exchange from apartments to single tenant net leaded properties and raw land for raw land also qualifies.

You cannot exchange a property that was held for investment for a property to be used for personal use. You also cannot exchange investment property for land to develop and sell as lots; this is classified as dealer activity and would be taxable like any real estate transaction.

The Value/Debt/Equity Calculations
If a fully tax deferred exchange is the goal the following specific rules must be strictly adhered to or you will not achieve the desired 1031 Exchange Status:

• The value of the replacement property must be equal to or greater then the value of the relinquished property.
• The debt of the replacement property must be equal to or greater than the debt on the relinquished property.
• The equity in the replacement property must be equal to or greater than the equity in the relinquished property.

Identification Rules
The identification process is the step where the Exchanger identifies his or her potential replacement property that is being considered for the acquisition as part of the 1031 Exchange. This is only an identification requirement and the property do not need to be under contract or in escrow; however the final transaction must be completed within the 180 day required period.

We only recommend giving or delivering the identification to the Qualified Intermediary and no one else. As identifications made to any other party raise the question as to whether it will qualify as a valid identification of replacement property.

The identified properties must be unambiguously identified by the property address, or the legal description, or the Assessor's Parcel Number, or all three to the Qualified Intermediary so the final transaction and related paperwork can be completed within the allotted time period.