Stages of Tax
"Follow These Simple Steps for a Successful Transaction"
By Asset
Preservation, Inc.
Kennen S. Cohen
STEP #1 - Sale of the Relinquished Property
1. (a) Phone consultation with
Asset Preservation, Inc. (API)
1. (b) Exchange opened with
API.
1. (c) Pursuant to the Exchange
Agreement, an Assignment is executed prior to closing and API assumes
the Exchanger's Purchase and Sale Contract.
1. (d) API instructs the closing
officer to directly deed the property from the Exchanger to the buyer.
1. (e) Proceeds are transferred
directly to API via wire transfer. API sets up a separate "Qualified
Exchange Account" for each Exchanger.
STEP
#2 - IDENTIFICATION OF REPLACEMENT PROPERTY
2. (a) API provides Exchanger
confirmation of exchange proceeds received; the 45-Day Identification
Period and 180-Day Exchange Period; the specific identification requirements;
summary of the Identification Rules.
2. (b) Exchanger properly identifies
potential replacement properties under either the Three Property Rule,
200% Rule or the 95% Rule.
STEP
#3 - PURCHASE OF REPLACEMENT PROPERTY
3. (a) Exchanger has a total
of 180 calendar days from the relinquished property closing date, or their
tax filing date, whichever is earlier, to acquire "like-kind"
replacement properties.
3. (b) Prior to closing on
the replacement property, Exchanger assigns the Purchase & Sale Contract
to API.
3. (c) After the Assignment
is executed, the exchange is complete when API purchases the replacement
property with the exchange proceeds and transfers it to the Exchanger
by a direct deed from the seller.
- Initial
Phone Consultation with the Exchanger
- Exchange
opened with Asset Preservation, Inc.
- API
provides exchange documents for sale to closing officer
- Sale
property deeded to buyer; Sale closed; funds wired to API
- API
provides identification information and summary of Rules
- Exchanger
identifies property within 45 calendar days
- API
forwards exchange documents for purchase to closing officers
- Funds
wired to closing officer; Direct deed and close of purchase
- Exchange
completed in 180 days; copies of documents to exchanger
For additional information
about Internal Revenue Code Section 1031, fee quotes, classes, office
presentations or brochures, call Kennen S. Cohen at 303-358-3321.
Kennen S. Cohen
Colorado Division Manager
Asset Preservation, Inc.
Denver: (303) 358-3321 Nationwide Toll-Free: (800) 282-1031
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