Replacement Property Solutions (RPS) announces an innovative way to satisfy the §1031 exchange deadline to defer taxes on the buying and selling of real estate
July 21, 2005 (Press Release) --
FOR IMMEDIATE RELEASE:
DENVER—July 19, 2005—Replacement Property Solutions (RPS) announces an innovative way to satisfy the §1031 exchange deadline to defer taxes on the buying and selling of real estate.
While §1031 exchanges are the only remaining way to buy and sell investment real estate and defer the taxes, there are some very specific requirements that must be met. The federal government requires property owners designate a replacement property within 45 days of the sale of the property generating a gain. The code also stipulates that the owner must purchase replacement property within 180 days of the first sale. If a property owner does not comply with either of these terms, the profit will be exposed to the full capital gains taxation.
RPS offers a unique way to address the §1031 exchange clock by assembling groups of investors who can collectively buy large tracts of land identified for possible development. RPS works with major builders whose objective is to change the use of land from agricultural to either residential or commercial. Since the entitlement process can be time-consuming, this will allow the investor to hold the replacement property at least a year, potentially earning income and appreciation while owning the property.
“Forty-five days is a woefully inadequate amount of time to locate a suitable replacement property,” says company founder and President Richard Darrow. “That’s why RPS works in concert with builders and developers to help you invest your money into a property that may become a changed-use property. This is a viable way to extend 1031 Exchange guidelines while you look for a more suitable property.”
RPS also requires thorough research be done before endorsing any property. Suitable properties will include a full development plan, maps, demographics, schedules, and zoning requests. The developer must have the proven track record of finding and completing the right projects.
About Replacement Property Solutions
Replacement Property Solutions is a facilitator of tax-deferred real estate transactions. §1031 Exchanges are the only legal way to defer taxes when you buy and sell investment real estate. To do this, the federal government requires that you designate a replacement property within 45 days after the sale of the investment property, and that this property be a like-kind property. RPS also offers excellent Qualified Intermediary services with an emphasis on helping clients find appropriate replacement properties and can handle a client’s exchange as well as assist with the purchase of the replacement property.
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DENVER—July 19, 2005—Replacement Property Solutions (RPS) announces an innovative way to satisfy the §1031 exchange deadline to defer taxes on the buying and selling of real estate.
While §1031 exchanges are the only remaining way to buy and sell investment real estate and defer the taxes, there are some very specific requirements that must be met. The federal government requires property owners designate a replacement property within 45 days of the sale of the property generating a gain. The code also stipulates that the owner must purchase replacement property within 180 days of the first sale. If a property owner does not comply with either of these terms, the profit will be exposed to the full capital gains taxation.
RPS offers a unique way to address the §1031 exchange clock by assembling groups of investors who can collectively buy large tracts of land identified for possible development. RPS works with major builders whose objective is to change the use of land from agricultural to either residential or commercial. Since the entitlement process can be time-consuming, this will allow the investor to hold the replacement property at least a year, potentially earning income and appreciation while owning the property.
“Forty-five days is a woefully inadequate amount of time to locate a suitable replacement property,” says company founder and President Richard Darrow. “That’s why RPS works in concert with builders and developers to help you invest your money into a property that may become a changed-use property. This is a viable way to extend 1031 Exchange guidelines while you look for a more suitable property.”
RPS also requires thorough research be done before endorsing any property. Suitable properties will include a full development plan, maps, demographics, schedules, and zoning requests. The developer must have the proven track record of finding and completing the right projects.
About Replacement Property Solutions
Replacement Property Solutions is a facilitator of tax-deferred real estate transactions. §1031 Exchanges are the only legal way to defer taxes when you buy and sell investment real estate. To do this, the federal government requires that you designate a replacement property within 45 days after the sale of the investment property, and that this property be a like-kind property. RPS also offers excellent Qualified Intermediary services with an emphasis on helping clients find appropriate replacement properties and can handle a client’s exchange as well as assist with the purchase of the replacement property.
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