1031 exchange QIs
Atlas 1031 Exchange
Atlas 1031 Exchange, LLC is a qualified intermediary for Internal Revenue Code Section 1031 exchanges, based in Naples, Florida. It accommodates exchanges for individuals, trusts and businesses, foreign and domestic, and states that accommodating 1031 exchanges is its sole focus.
The firm handles forward and reverse exchanges, improvement and leasehold improvement exchanges, and international exchanges. Eligible property types it covers include land, easements, mineral and water rights, single-family residences, condominiums, duplexes and apartments, farms and ranches, bed and breakfasts, self-storage facilities and other real property held for business or investment, along with tenants-in-common and DST replacement property and FIRPTA questions for non-citizens.
Exchange proceeds are held under Prudent Investor Standard procedures in segregated, interest-bearing accounts, FDIC insured to $250,000 and requiring written approval for disbursement, or in a Qualified Escrow Account. The firm says it uses Qualified Escrow Accounts on every exchange, through First Foundation Bank in San Diego and Nano Banc in Irvine, and that each exchange agreement states the funds are not assets of Atlas 1031 Exchange. After closing, a summary of the primary exchange documents and HUD settlement statements goes to the taxpayer and their accountant to support IRS Form 8824.
Atlas 1031 Exchange, LLC was established in 2007, by a managing member who co-founded a predecessor intermediary in Destin, Florida in 2003, and has a Certified Exchange Specialist on staff. Fees are not published; ask for the fee schedule and the escrow arrangements in writing before the closing.
Best for
Investors and businesses selling real property who want a specialist qualified intermediary for a forward, reverse or improvement exchange, including foreign sellers and cross-border transactions.
What they do
- Forward (delayed) 1031 exchanges
- Reverse 1031 exchanges
- Improvement and build-to-suit exchanges
- Leasehold improvement exchanges
- International and cross-border exchanges
- FIRPTA guidance for non-citizen exchangers
- Qualified escrow account administration
- Exchange documentation and Form 8824 summaries
Details
| Attribute | Value |
|---|---|
| Founded | 2007 |
| Memberships | Certified Exchange Specialist (CES) on staff |
| Exchange types | Forward, Reverse, Improvement |
| Fund security | Segregated accounts |
What stands out
- Says it has accommodated over 3,000 simple and complex, domestic and foreign exchanges.
- Holds proceeds in segregated, interest-bearing accounts FDIC insured to $250,000, or in a Qualified Escrow Account.
- Uses Qualified Escrow Accounts on every exchange, through First Foundation Bank and Nano Banc.
- Has a Certified Exchange Specialist on staff; the site notes only around 100 hold the designation nationally.
- Teaches state-approved GRI-3 continuing education 1031 classes in Indiana, Florida and Texas.
Common questions
- Is personal property still eligible for a 1031 exchange?
- No. The Tax Cuts and Jobs Act of 2017 removed tangible and intangible personal property from Section 1031 with effect from 1 January 2018, so only real property now qualifies for the deferral. Aircraft, equipment, furniture and fixtures, collectibles, bullion, coins, franchises, licenses and patents were exchangeable before that date.
- Can an investment property be converted into a primary residence?
- Yes, provided there was no concrete intent to convert at the time of purchase. Revenue Procedure 2008-16 gives a safe harbor: the replacement property qualifies if it is held for two years and rented to another person. Converting soon after purchase is likely to draw IRS attention.
- How should exchange proceeds be held?
- Atlas recommends a Qualified Escrow or Qualified Trust account in addition to a non-commingled account, because it sets out the procedures the escrow agent must follow. It also advises engaging an intermediary that belongs to the Federation of Exchange Accommodators and has a Certified Exchange Specialist on staff, and checking that the exchange agreement states the proceeds are not assets of the intermediary.