1031 exchange QIs
U.S. 1031 Exchange Services
U.S. 1031 Exchange Services, Inc. is a qualified intermediary in Sarasota, Florida, founded by a Florida Bar board certified real estate attorney who has been assisting people with 1031 exchanges for more than 35 years. It handles forward, reverse, improvement and construction exchanges.
The intermediary role runs through six steps: preparing the exchange agreement between intermediary and exchanger, notifying all parties of the assignments and furnishing instructions to settlement agents, establishing a qualified escrow account for the relinquished property proceeds, managing the 45-day identification notice and delivering escrow funds for the replacement property settlement, arranging direct deeding of the properties, and providing a final accounting with any unused proceeds returned.
The corporation operates from the same office as the founder's law firm at 3400 S. Tamiami Trail in Sarasota, which the site says makes it efficient to close both the relinquished sale and the replacement purchase on Florida's west coast. A 45-180 day calculator for critical dates is published on the site, along with an intake questionnaire covering the exchange type, the relinquished property and any identified replacement property.
The basic fee starts as low as $700 for properties under $300,000 and is collected out of the sale proceeds when the escrow funds arrive. The company states that it does not provide tax or legal advice, and fund-security arrangements such as bonding or segregated account terms are not detailed on the site.
Best for
Investors selling appreciated investment or business real estate who need a qualified intermediary, particularly on Florida's west coast where the affiliated law firm can close both sides. Anyone who needs documented fund-security terms should ask before engaging.
What they do
- Forward 1031 exchanges
- Reverse 1031 exchanges
- Improvement and construction exchanges
- Exchange agreement and assignment documents
- Qualified escrow account setup
- 45-day identification notice management
- Direct deeding coordination
- Final exchange accounting
Details
| Attribute | Value |
|---|---|
| How they charge | Basic fee starts as low as $700 for properties under $300,000 and scales with sale price; it is deducted from the relinquished property sale proceeds. |
| Exchange types | Forward, Reverse, Improvement |
| Fee range | Under $1k |
What stands out
- Basic fee starts as low as $700 for properties under $300,000, deducted from the relinquished property proceeds.
- Has been facilitating 1031 exchanges for more than 35 years.
- Operates from the same office as the founder's law firm at 3400 S. Tamiami Trail in Sarasota.
- Publishes a 45-180 day calculator for identification and closing deadlines.
Common questions
- Why consider a 1031 exchange?
- Sellers of appreciated real estate are normally subject to capital gains tax, but under the 1031 rules an exchange is not treated as a sale and no gain is recognized at the time. The basis of the relinquished property carries over to the replacement property, and tax stays deferred until the replacement property is sold outside an exchange.
- What does a qualified intermediary actually do?
- The intermediary prepares the necessary documents, including the exchange agreement, and enters into that agreement with the exchanger. It then acquires the relinquished property and transfers it to the buyer, acquires the replacement property from its seller, and transfers that property to the exchanger to complete the exchange.
- Which properties qualify for a 1031 exchange?
- Both the relinquished and the replacement property must be held for investment or for productive use in a trade or business. That includes rental property, a business location such as a store or plant, and vacant land. A personal residence does not qualify.
- How is the intermediary fee charged and collected?
- Fees are based on the sale price of the property, with the basic fee starting as low as $700 for properties under $300,000. It is deducted from the sale proceeds of the relinquished property when the escrow funds are received, or placed on the replacement property closing statement if the intermediary will not receive the funds.