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 exchange procedure at Cooney & Associates is designed for speed, accuracy and safety. Every aspect is managed in accordance with IRS rules and regulations.

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.

 A 1031 tax deferred exchange may not always the right or best solution. 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 deferred exchange.

Cooney and Associates, Inc. is your 1031 Tax Exchange Specialists
 

 The sale and the purchase transactions must be structured property in order to qualify for tax-deferred treatment under a 1031 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 exchange treatment.
 
 
 Investors must acquire one or more like-kind replacement properties that are equal to or greater in net purchase value than the net sales value of the relinquished property, must reinvestment all of the net cash proceeds from the sale of the relinquished property, and must replace the same amount of debt that was paid off on the sale of the relinquished property with equal debt on the like-kind replacement property. The Investor can always put more cash into the purchase of his like-kind replacement properties, but can not pull any cash out of the transaction without incurring depreciation recapture and/or capital gain income taxes.

Latest Article: Exchanges vs. Selling?

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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 exchange 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 simultaneous swap of your property for another property. 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 deferred 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 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.

Cooney & Associates, Inc. Team - Tim Cooney, Andrea Mull, & Chloe Marty

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