Cooney and Associates, Inc. is dedicated to facilitating Section 1031 Tax Deferred Exchanges, offering professional and experienced service that provides the maximum assurance to investors and their advisors that the exchange transaction will be completed as planned and with the desired tax results.
Safety and security of your funds is the single most important aspect of our services, no matter how large or small the exchange transaction.
The professional 1031 tax exchange procedure at Cooney & Associates is designed for speed, accuracy and safety. Every aspect is managed in accordance with IRS rules and regulations for all 1031 property exchanges.
We invite you to review the information found here on our website, and hope that the information herein is useful to you. Please feel free to contact us with any questions you may have regarding 1031 exchanges or your pending exchange.
1031 property exchanges may not be ideal for your situation. Investors and buyers should consider whether other tax deferral or tax exclusion strategies might be more appropriate and should always consult with their legal, tax and financial advisors before entering into any real estate transaction, especially a 1031 tax exchange.
The purchase and sale transactions must be a structured real estate property in order to qualify for tax-deferred treatment under a 1031 tax exchange. The Qualified Intermediary such as Cooney and Associates, Inc. often referred to in the real estate industry as the 1031 Exchange Accommodator or the 1031 Exchange Facilitator will complete the necessary legal documents to ensure that you are in compliance will all laws, regulations and rulings.
It is critical that the Qualified Intermediary be be assigned into the Purchase and Sale Agreement or Contract and the Escrow Instructions, if any, prior to the close of the sale and purchase transactions. If either transaction closes without the Qualified Intermediary preferably Cooney and Associates, Inc., involved the transaction will not qualify for 1031 property exchange treatment.
What You Should Know About 1031 Tax Exchange A lot of buyers and sellers have never even heard of a 1031 exchange and just may simply be unaware of the benefits. Basically, the 1031 tax exchange was created in in the early 90's and it was designed to help real estate investors. They benefit by re-investing the gains they make on similar properties which they exchange for their old ones. While it may seem like a simple tax deferral procedure, it is vital that you learn all about the 1031 tax exchange rules before attempting one. Learn to invest wisely before attempting it.
The capital made on the 1031 exchanges should be dealt with through a qualified intermediary such as Cooney and Associates, Inc. That way you cannot be accused of keeping the money for your own financial gain. You have to invest the money into an account which should stay untouched until the end of the tax year. To benefit by the like kind exchange you must identify the next property within 45 days of the previous home sale. Then the purchase should be completed within 180 days. Any property purchased later than that and you will not be entitled to the property exchange.
A 1031 Exchange, also known as a Like Kind Exchange or Starker Tax Deferred Exchange is a Section in the Internal Revenue Code (Section 1031) that states if an asset (usually real estate) is sold, the proceeds of the sale can be reinvested in an asset of a similar kind (like-kind asset), and no capital gain or loss is recognized, allowing the deferment of capital gains taxes that would otherwise have been due on the first sale. Cooney and Associates, Inc. specializes in facilitating 1031 exchanges transaction from one asset, usually a real estate exchange, asset to another within a specified amount of time.
Although the 1031 property exchanges laws were enacted in the 1920s, it was not until the 1990s that the laws were clarified and simplified. Now, it is relatively easy for anyone to enter into an exchange. With the real estate boom that engulfed the country in the 1990s, 1031 exchanges became (and continue to be) more popular than ever. A traditional 1031 exchange involves the property exchange from one to another. But in 1979, a decision by the U.S. Court of Appeals in the Starker case paved the way for what is known today as a Starker exchange, more commonly known as the Deferred Exchange. The property exchange allows you to sell your property first and then buy your replacement property at a later date. The regular deferred exchange is the most common form of Property exchanges done today.
A popular strategy in the past was to gain a replacement property in an like kind exchange, rent the property out for a year, convert the property to a personal residence and sell it after two years and exclude the capital gain under the home sale exclusion rules. Congress closed this loophole in 2004. For questions regarding this or how to begin a 1031 tax exchange, contact the Cooney and Associates, Inc. team today for all your 1031 tax info.
When you join, C&A, Inc.'s email list, you can expect to receive about one email a month from C&A, Inc. on topics such as:
Announcements of 1031 courses, seminars, and events
New IRS Rulings that affect Section 1031
Periodic newsletters
General 1031 exchange information
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Dedicated to 1031 exchanges, Cooney & Associates, Inc. is an exchange facilitator and provides 1031 tax exchanges as a qualified intermediary for 1031 property exchanges as well as like kind exchanges
COONEY & ASSOCIATES, INC.