Southern Utah 1031 Exchange

Southern Utah's steady growth in recent years has made it a popular place for investors interested in 1031 Exchanges. Property owners here can trade investments with confidence, knowing a strong local economy coupled with an increase in new construction projects will keep real estate demand high.

As a full service Realtor, I'm ready to provide expert assistance with your next St. George or Southern Utah 1031 exchange. My services cover every step of the process, from helping to sell your initial investment, to closing the deal on your exchange property.

Below is a quick guide to the 1031 exchange process, for those who've never acquired property this way but would like to save money on their next real estate investment. To learn more about 1031 exchanges in Southern Utah, feel free to contact me anytime.

How A 1031 Exchange Works

A 1031 exchange, also known as a Like Kind Exchange, allows a property owner to defer all capital gains taxes from the sale of an investment property when they use a qualified intermediary to buy another investment property of equal or greater value. This allows investors to increase their property holdings without paying more taxes during the sale. (It's called a 1031 exchange because the tax rules are spelled out under section 1031 of the Internal Revenue Code.)

The 1031 Process

• A real estate owner decides to sell investment property and do a 1031 exchange. S/he sells the property with the help of a qualified intermediary (QI).
• The QI holds all profits from the sale, to be used toward the purchase of another property.
• Within 45 days of the close of escrow on the initial property, the real estate owner identifies replacement properties as required by law. This is known as the "Identification Period".
• Within 180 days of the close of escrow on the initial property, the real estate owner closes on one of the replacement properties. This step, called the "Exchange Period," completes the exchange. No cash – or ''boot'', as it is known – is taken by the exchanger.