We facilitate the following types of exchanges
An exchange transaction where both the relinquished property and the acquisition property are closed on the same (or closely to) the same date. The proceeds of the relinquished property can be directly assigned to the acquisition closing.
An exchange transaction where the relinquished property closes, the funds are held by the Facilitator and used at a later date (within the required time limitations) to acquire replacement property. This is the most common type of 1031 Exchange.
An exchange transaction where the replacement property is acquired prior to the disposition of the relinquished property. These are more complex transactions and First American Exchange of Skagit County encourages you to consult with your tax advisor before attempting this type of exchange. Certain lending institutions may not wish to participate in this type of exchange.
An exchange transaction where the acquisition property is vacant land or a property in need of completion/renovation. The exchange funds are held by the Intermediary and used both for the acquisition and completion of the project. You should proceed with caution on build-to-suit exchanges as there are inherent complications with the identification process of a “to be produced” property and concerns of completion within the 180 day time allotment. Advice from your tax advisor and/or attorney is strongly recommended.
Fractional (Tenants-in-common) Exchange:
An exchange where the acquisition property is a prepackaged interest in a larger, institutional-grade property as provided by IRS Revenue Procedure (2002- 22). This procedure helps overcome the hurdle of identifying a suit- able property within the 45-day window.
An exchange involving more than one relinquishment property or more than one acquisition property. This type of exchange may include improvements.