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LandAmerica:
A Reliable Resource
for 1031 Tax-Deferred Exchanges
By Barbara Lewis Throughout Northern California, investors, real estate agents, law firms and CPAs depend upon LandAmerica to facilitate their 1031 investment and business goals. Serving them is LandAmerica’s Hacienda Park office, led by Vice President and Branch Manager Michelle Rojas, Esq. “The potential for substantial tax savings exists with every investment property transaction because Section 1031 of the IRS code allows for 100% deferral of capital gain regardless of the size of the investment,” Ms. Rojas says. “In order to ensure proper documentation and absolute security of funds, the selection of a Qualified Intermediary (QI) like LandAmerica is crucial.” Individuals and commercial entities represent many reasons for exchanging property including consolidation, change of property type or location, financial portfolio diversification and life transitions. They may wish to convert from maintenance-intensive to professionally-managed property or to improve their investment performance. Though commercial and residential real estate properties are the most commonly used in 1031 exchanges, many other assets like business vehicles, aircraft, home offices and factory equipment are eligible as well. Even livestock and FCC (Federal Commerce Commission) licenses qualify. How does a 1031 Exchange work? Here’s how. First, the seller signs the contract to sell an existing investment property or business. Then, after escrow is opened but before the relinquished property is transferred, a Qualified Intermediary is contacted who executes the 1031 Exchange Agreement. At closing, the net sale proceeds are delivered to the QI, who assumes control of them. Then, within 45 days, the property owner uses forms provided by LandAmerica (or another QI) to notify the QI of the identified replacement property. The final step, closing of escrow on the replacement property, takes place within 180 days of the transfer or the federal tax return due date, whichever is sooner. “We are technologically advanced and can deliver services very quickly,” Rojas continues. “For example, we may receive an urgent call early in the morning saying that someone had neglected to set up a 1031 exchange that was intended as part of a transaction. Assuming the transaction hasn’t been closed, we can produce documentation to initiate an exchange within a few hours. The ability to receive that kind of speedy service is a real benefit to our clients. “Though the process is straightforward, we always advise individuals, professionals and businesses to call us to discuss their specific situations and needs. Even though we are part of a large title company, we are somewhat boutique in our approach and pride ourselves in giving equal attention to each one of our clients. “We know that there are many businesses within Hacienda that focus on real estate, like residential and commercial real estate brokerage firms, lending institutions, accountants, attorneys and escrow firms,” Rojas concludes. “As a local resource, we serve that whole host of companies. They are always welcome to bring their clients to our offices to learn about the process.” LandAmerica Exchange Company is a wholly-owned subsidiary of LandAmerica Financial Group, Inc., a Fortune 500 company, which has more than $4 billion in assets and $1.4 billion in shareholder equity. For information, contact Michelle Rojas at (925) 924-1634, extension 12, or visit www.landam.com. |
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| Last modified: June 07 2010 06:46:27 Copyright © 2010 HBPOA |
