Your Preferred 1031 Exchange Specialists

We provide professional 1031 exchange services and offer free consultations

Your Preferred 1031 Exchange Specialists

We provide professional 1031 exchange services and offer free consultations

About Us

1031 Exchange Professionals

Preferred 1031 caters to clients throughout Texas and all fifty states with a need for a 1031 exchange. We facilitate 1031 like-kind exchanges as a Qualified Intermediary (QI). We also provide ‘transaction specific’ education for clients regarding 1031 exchange processes and structure. Additionally, we educate clients on legacy wealth building advantages of 1031 exchanges and provide a network of qualified Replacement Property to complete a 1031 exchange in the event the client is unable to identify property within the 45 day deadline. Preferred 1031 is aligned with legal, accounting, and other 1031 exchange professionals for unique exchange transactions.

Commitment

Providing responsive catered expertise to your 1031 transaction.
Simple and concise process.
Fully compliant with IRC regulations.

Security

Exchange funds are held in highly rated national banks. Funds are covered by FDIC insurance up to national limits. Never a comingling of funds.

Insurance

Fidelity and Surety Bond: Protects the taxpayer in the unlikely event of a company failure; the bond is in place to satisfy the financial obligations of the company.
Errors and Omissions Insurance:  Safeguards against employee negligence resulting in a loss to the taxpayer.


Our Services

Forward Exchange

A forward exchange allows a taxpayer to sell a property and reinvest the sale proceeds in a like-kind property to defer capital gains tax.

Reverse Exchange

A reverse exchange allows the taxpayer to structure a 1031 exchange when it is necessary to purchase the replacement property prior to selling the relinquished property.


1031 Exchange FAQ

What is a 1031 like-kind exchange?

A 1031 like-kind exchange allows a tax payer to sell a property and reinvest the sale proceeds in a like-kind property to defer capital gains tax.  

What is a Reverse Exchange?

A Reverse Exchange allows the tax payer to structure a 1031 exchange when it is necessary to purchase the replacement property prior to selling the relinquished property.

What is considered like-kind property?

Any real estate held as investment or for business use.  Oil and gas minerals are also considered like-kind property.  Additionally, funds received for pipeline damages, pad site construction, etc may be considered like-kind.  Each of the aforementioned assets can be interchanged.  For example, O&G mineral interest can be sold and exchanged for income producing real estate.  If you’re unsure if your property qualifies please give us a call.

What is the 45 day and 180 deadline?

In a forward exchange the tax payer is provided 45 days from the closing date of the relinquished property to identify property/properties they are interested in purchasing.  The tax payer then has 180 days from the initial closing date to complete the purchase of the replacement property.

Do I only have to roll my capital gain into an exchange?

Yes and No.  To gain the full tax benefit, the entire sales proceeds must be used to purchase new property.  Any sales proceeds not used to purchase replacement property are considered “boot” and subject to capital gains tax.  However, there are solutions to avoid this scenario.


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