Important Notice to 1031 Exchange Clients (Exchangors)
Clients, please read the following important information carefully.
Tax-deferred like-kind exchanges are complex transactions that should only be entered into with the proper advice and guidance of your professional legal, tax, and financial advisors. You should consult with your advisors before beginning a tax-deferred like-kind exchange.
Exeter 1031 Exchange Services, LLC will do everything we can to assist you with your tax-deferred like-kind exchange transaction, but we cannot provide you with legal, income tax, and/or financial advice or guidance.
You should notify your Exeter 1031 Exchange Services, LLC 1031 Exchange Advisor immediately if any of the following circumstances apply to your tax-deferred like-kind exchange transaction:
- You intend to withdraw cash from your tax-deferred like-kind exchange transaction before or after you complete your transaction
- You intend to request a refund of the earnest money deposit previously deposited by you with non-exchange funds
- You intend to build or construct improvements on the like-kind replacement property as part of your tax-deferred like-kind exchange
- You will have a seller carry back note (seller financing) as part of your tax-deferred like-kind exchange transaction
- You are a Non-California resident selling California property
- Your transaction is an improvement (build-to-suit or construction) tax-deferred like-kind exchange transaction
- Your transaction is a reverse tax-deferred like-kind exchange transaction
- Your 1031 exchange transaction includes personal property as part of your tax-deferred like-kind exchange transaction
- You find any discrepancy, error or omission in your transactional documents
1031 Exchange Clients are responsible for monitoring and complying with their own required tax-deferred like-kind exchange deadlines as outlined in Section 1031 of the Internal Revenue Code and Section 1.1031 of the Treasury Regulations as outlined below:
- Identifying your Like-Kind Replacement Property within 45 calendar days from the closing date (conveyance of title) of the Relinquished Property
- Acquiring all Like-Kind Replacement Property on or before the earlier of:
- (1) 180 calendar days from the closing date (conveyance of title) of the Relinquished Property; or
- (2) the due date of your Federal income tax return for the year in which the Relinquished Property Closing date occurs, including extensions.
The Internal Revenue Service has placed certain restrictions on Clients' rights to receive, pledge, borrow, or otherwise obtain the benefits from your tax-deferred like-kind exchange funds pursuant to Section 1.1031(k)-(g) of the Internal Revenue Service Regulations while your funds are being held and safeguarded by your Qualified Intermediary.
Generally, you can access your funds if:
- Your 45 calendar day Identification Period has expired and you have not identified any Replacement Property; or
- You have acquired all of the Replacement Property to which you are entitled and the 45 day Identification Period has expired and funds remain; or
- Your 180 calendar day Exchange Period has expired.
Exeter 1031 Exchange Services, LLC is always available to answer any questions you may have. Simply contact one of our national branch offices and speak to a 1031 Exchange Specialist for assistance.
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