1031 Exchanges
Nationwide qualified intermediary services with a personal touch.
Why Leader1031?
About Us
Leader1031*, a subsidiary of Leader Bank, is proud to provide relationship Qualified Intermediary services with a world-class client service experience across all 50 states. Our team has decades of combined industry experience helping real estate investors use the tax-deferred advantages of Section 1031 exchanges to sell and purchase commercial properties, residential properties, and rental properties. And with the added security of a financial institution, you’ll always know where your funds are being held.
Our team is here to help!
1031 Exchange Benefits
Real estate investors can defer capital gains tax on the sale of investment property, including rental property, thus providing a path to meaningful wealth building through the deferral of capital gains tax. 1031 exchanges also provide improved purchasing power and cash flow, help to diversify your real estate portfolio, and preserve your assets.
1031 Requirements
You must use a 1031 company or Qualified Intermediary like Leader1031 and the transaction must be structured as an exchange, not a sale followed by a purchase. Additionally, your investment in the replacement property must be equal to or greater than the funds received from the sale of the original property to qualify for deferral of capital gains tax.
1031 Exchange Process
Once the seller lists their property the sale proceeds are routed to their 1031 advisor or Qualified Intermediary like Leader1031 and then used to purchase a replacement property, allowing the taxpayer to defer capital gains tax on the transaction.
FAQs
Why Do a 1031 Exchange?
A 1031 Exchange provides the ability to defer capital gains taxes on the sale of investment property (“relinquished property”) thus providing a path to potential wealth building.
What is the Difference Between a 1031 Exchange and Traditional Sale-and-Purchase?
The transaction must be structured as an exchange and not just a sale, followed by a purchase, and a Qualified Intermediary (QI) must be involved prior to the closing of the relinquished property to create an exchange agreement with the taxpayer, including the assignment of the purchase contract, the identification of the replacement property, and other supporting documentation. The QI must hold the proceeds during the exchange period and for the acquisition of the replacement property.
Can Your CPA or Attorney Act as Your Qualified Intermediary?
No. Your CPA and Attorney are considered disqualified persons if they have provided any non-exchange related services within the two-year period prior to the exchange.
How Do I Get Started with a 1031 Exchange?
The first step is to discuss the potential tax impact of selling the investment property with your tax advisor. Once you and your advisor have determined to move forward with an exchange, contact a Qualified Intermediary like Leader1031 to discuss next steps. Typically, it is not necessary to contact the QI until the relinquished property has gone under contract. However, the taxpayer or their advisor can contact Leader1031.com, LLC anytime to discuss the process or gain clarification on specific requirements.
*Leader1031.com, LLC ("Leader1031") is a wholly owned subsidiary of Leader Bank, N.A. This website is provided as general information only and should not be taken as legal, investment or other professional advice. This content of this publication shall not be construed as a recommendation to participate in any particular trading, financial or investment strategy, and neither Leader Bank, NA nor Leader1031.com, LLC can provide legal or tax advice concerning the specific tax consequences of a given transaction. Any action that you take as a result of information or opinions provided in this publication is ultimately your responsibility. Consult your attorney or tax professional before making any investment or financial decisions.
1031 Exchange Calculator
This 1031 Exchange calculator will estimate the taxable impact of your proposed sale and purchase. To pay no tax when executing a 1031 Exchange, you must purchase at least as much as you sell (Net Sale) AND you must use all of the cash received (Net Cash Received). If you take cash out and/or you purchase less than you sell, it is considered recognized gain and will be taxed. By changing any value in the following form fields, calculated values are immediately provided for displayed output values.
1031 Exchange Timeline Calculator
A 1031 Exchange requires meeting very strict deadlines for successful completion. Use this calculator to help you determine the deadlines for the 45-Day Identification Period and the 180-Day Exchange Period based on the closing date you provide for the relinquished property.
Investment Property Calculator
An investment property can be an excellent investment. This calculator is designed to examine the potential return you might receive from an investment property.
1031 Exchange Resources
Dive into our educational blogs to learn more about the ins and outs of 1031 exchanges and stay up to date on industry trends.
We've collected some of the most common questions we get about 1031 exchanges as well as some of the common misconceptions about the exchange process.
Check out interviews with our expert team members to learn more about the latest developments in the 1031 exchange landscape.
