Welcome to Southern Arizona
- July - Family Circle names Oro Valley "10 Best Towns for Families."
- June - Men's Journal names Tucson "Top 5 Best Places to Live."
- July - Solar Power Association ranks TEP "Top 10 Most Solar Integrated."
- March - Fortune names Oro Valley "100 Best Places to Live and Launch."
- December - Self's "Healthiest Cities" report ranks Tucson #1 "Environment."
Southern Arizona MLS Map Search
1031 Tax Exchange
Arizona Tax Free Deferral through an Arizona Property 1031 Tax Exchanges offers a way to preserve the wealth that you have worked so hard to accumulate and in turn grow your investment assets by reinvesting the deferred tax savings into other Arizona Investment Properties.
In a typical Arizona Deferred Exchange, the most common type of real estate tax free exchange, you the taxpayer sells a business or investment property and acquires an Arizona Replacement Property of equal or greater value within 180 days. The use of a Qualified Intermediary, such as OwnArizona™ 1031 Exchange Services, is an Arizona safe harbor to facilitate a valid tax deferred exchange.
This OwnArizona™ Qualified Intermediary must possess intimate experience and a thorough understanding of the State of Arizona 1031-A Properties rules, requirements and regulations. At MyOwnArizona 1031 we focus solely on facilitating exchanges of Real Estate Tax Property with quality, expertise and pricing.
Skilled Three-Step Guidance Through 1031 Exchanges
Before you begin the Arizona Tax Free Exchange process, be sure to consult with your tax or financial advisor to ensure that a 1031 exchange is right for you. Then simply contact our OwnArizona™ 1031 Exchange Specialists at 520-977-7946. Your Arizona 1031 Exchange Coordinator will lead you through the process, answering your questions and providing guidance along the way.
Step One: Sale of the Relinquished Property
Before the sale of the first property the 1031 Exchanger must complete the documentation prepared by OwnArizona™ 1031 Exchange Specialists. At closing, the proceeds are delivered directly to OwnArizona™ 1031 Exchange, as the Qualified Like Reverse Intermediary.
Step Two: Identification of the Replacement Exchange Arizona Property
The Arizona 1031 Exchanger must identify the property to be purchased (generally called the "Replacement Property") within 45 days following the sale of the Relinquished 1031 Property. You the taxpayer may generally identify three properties as a potential 1031 Exchanges Replacement Properties, or more under alternate rules of identification.
Step Three: Purchase of the Replacement Exchange Arizona Property
The Arizona 1031 Exchanger must obtain the Arizona Exchanges Replacement Property within 180 days following the sale of the Relinquished Tax Property, which must be identified property, subject to the rules listed above. At closing, the proceeds are paid directly by OwnArizona™ 1031 Exchange, as the Qualified Like Reverse Intermediary, and the Arizona 1031 Exchanger receives the Deed to the Arizona Replacement Property.
Sample Arizona Section 1031 Tax IRS Exchanges
"Samantha" Example Scenario 1:
Samantha decides to sell a duplex that she has owned as an investment property for 10 years originally purchased for the amount of $70,000, and is now worth $750,000. Her OwnArizona™ real estate agent has recommended that she contact OwnArizona™ 1031 Exchange Specialists to act as his Qualified Intermediary in a 1031 Tax Deferred Exchange, thereby deferring payment of capital gains taxes. The OwnArizona™ real estate agent finds Samantha an office building valued at $3,000,000 for her replacement property. Samantha is successful in the 1031 Tax Exchange Process and as a result does not have to pay capital gains taxes in the amount of $102,000 ($750,000 less original purchase price of $70,000 equals $680,000 profit -- capital gains tax is 15% times $680,000 equals $102,000). She is able to purchase the office building leveraging the net proceeds from her duplex. Samantha was able to purchase a property worth $408,000 more using the 1031 exchange.
Sale |
Exchange |
|
NET EQUITY |
680,000 |
750,000 |
CAPITAL GAINS TAX |
102,000 |
0 |
EQUITY TO REINVEST |
648,000 |
750,000 |
PROPOSED ACQUISITION* |
$2,592,000 |
$3,000,000 |
*(Presuming 25% Downpayment) |
"Sam Investor" Example Scenario 2:
Sam Investor owns a 10-unit apartment building, which he bought 3 years ago for $150,000. He discussed his situation with his OwnArizona™ Financial Advisor, who suggested he exercise a 1031 Tax Free Deferred Exchange for the acquisition of a different Arizona investment property. Sam has found a Buyer to purchase his apartment building for $900,000. Instead of selling the building
directly, Sam executes a 1031 Tax Property Exchange. As a result, he defers capital gains tax of $112,500 on his $750,000 profit ($900,000 less original price of $150,000 equals profit of $750,000 times 15% current federal capital gains rate equals $112,500 capital gains tax). Sam uses
OwnArizona™ 1031 Exchange Specialists as his Qualified Intermediary and closes on 60 acres of unimproved Arizona investment land at the purchase price of $3,600,000. No capital gains tax is
then due as Sam has completed a valid 1031 tax deferred exchange exchanging one Arizona investment property for another. Sam was able to purchase an Arizona investment property worth $450,000 more using the OwnArizona™ 1031 Tax Property Exchange.
Sale |
Exchange |
|
NET EQUITY |
750,000 |
900,000 |
CAPITAL GAINS TAX |
112,500 |
0 |
EQUITY TO REINVEST |
787,500 |
900,000 |
PROPOSED ACQUISITION* |
$3,150,000 |
$3,600,000 |
*(Presuming 25% Downpayment) |
There are other types of Arizona Section 1031 Tax IRS Exchanges, such as Reverse Exchanges, Improvement Exchanges, and Personal Property Exchanges. OwnArizona™ 1031 Exchange Specialists provides excellent expertise for such tax free exchanges and your OwnArizona™ 1031 Exchange Specialists can discuss the specifics of your situation with you.
The OwnArizona™ Team Does More Than Buy and Sell Tucson Real Estate
We spend a lot of time out in the local 1031 Tax Free Exchange Properties market getting to know every in and out of each area and the Arizona 1031 Tax Free Exchange Property real estate market in general.
Go ahead, Call or Text us right now at: 520-822-6575.
Or, contact us by email for Tucson & Southern Arizona 1031 Tax Free Exchange Property real estate results, not hype.
The market commentary material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without error.
All Arizona Real Estate
